Broker Randall Duggan Investigated by Washington Regulators Amid Multiple Investor Complaints

Randall E. Duggan (CRD #5559097), a broker and investment adviser based in Bellingham, Washington, is under investigation by the Washington State Securities Division and faces several customer disputes tied to his investment recommendations. Duggan is currently registered with Moloney Securities Co., Inc. and Moloney Securities Asset Management LLC, where he has been affiliated since 2016.

Active State Investigation Into GWG L Bonds and Preferred Stock Sales

In July 2025, the Washington State Securities Division launched an investigation into Moloney Securities Co., Inc. and certain registered representatives, including Duggan. The inquiry focuses on potential violations of the Securities Act of Washington concerning the solicitation and recommendation of GWG Holdings securities, including L Bonds and Preferred Stock.

These complex, illiquid investments have been the subject of heightened regulatory scrutiny after GWG Holdings filed for bankruptcy in 2022, leaving many investors facing significant losses. Regulators are examining whether brokers provided adequate risk disclosures and ensured these products were suitable for their clients.

Duggan has stated that he refutes the allegations and is fully cooperating with authorities. The investigation remains open and pending, with no findings or disciplinary actions issued to date.

Pattern of Suitability Allegations Over Debt and DPP Products

Duggan is currently named in a pending arbitration case filed in August 2025. The complaint alleges that Duggan recommended unsuitable investments and acted negligently in connection with corporate debt, direct participation programs (DPPs) and real estate securities between 2017 and 2021. Claimed damages range from $500,000 to $900,000, and the case remains active. Duggan has denied all allegations, stating that his recommendations were made appropriately based on client objectives and risk tolerance.

Settled Complaints (2023-2025)

In addition to the pending arbitration, Duggan’s record lists several recently settled disputes involving similar allegations of unsuitable investment advice and inadequate risk disclosure.

• May 2024: Alleged suitability and negligence tied to investments made between 2020 and 2021. The case was settled for $125,179, with no personal contribution from Duggan.
• April 2024: Alleged unsuitable and negligent recommendations from 2016. The matter was settled for $25,000, again with no personal contribution.
• May 2023: Two related claims involving alleged unsuitable corporate debt recommendations from 2020. The firm settled for $92,574 and $17,317, with Duggan making no personal contribution.

In each case, Duggan maintained that Moloney Securities settled the disputes for business reasons and that he disputes all allegations of wrongdoing.

What Investors Should Know

DPPs and other alternative investments are often marketed as steady, income-producing opportunities, but can expose investors to significant liquidity, valuation and default risks. These products are typically difficult to sell, may lack transparency and can lose substantial value if the issuer experiences financial distress or fails to meet debt obligations.

Repeated customer complaints alleging unsuitable recommendations in such products may signal inadequate supervision or insufficient risk disclosure by the firms and brokers involved. In many cases, these products are sold to conservative investors seeking stable returns, even though they carry risks more comparable to speculative securities.

Those who invested in GWG Holdings or other alternative products with Duggan or Moloney Securities should review account activity and evaluate potential exposure or losses.

Speak With an Investment Fraud Attorney Today

If you suffered financial losses related to GWG Holdings or other alternative investments recommended by Randall Duggan or Moloney Securities, you may have recovery options through FINRA arbitration.

The Sonn Law Group represents investors nationwide in cases involving unsuitable investment recommendations, misrepresentation and failure to supervise. Our attorneys operate on a contingency fee basis, which means you pay nothing unless compensation is recovered.

To schedule a free, confidential consultation, call 833-912-3000 or complete our online contact form.