Mack Leon Miller of Brooklyn, New York submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for allegedly making unsuitable recommendations and participating in excessive trading in a customer’s account in violation of FINRA Rules 2111 and 2010.
In 2017, Mr. Miller was registered as a General Securities Representative (GSR) with both Dawson James Securities and then Spartan Capital Securities. According to the FINRA findings, during his time of employment with Dawson James and Spartan, Mr. Miller allegedly made unsuitable recommendations and engaged in excessive trading in a customer’s account. The findings stated that the customer lacked knowledge as an investor and followed all of Mr. Miller’s recommendations. Due to mounting commissions and fees, it became impossible for the customer to benefit from the exchange. Mr. Miller’s alleged excessive trading, including the commissions and margin interest, caused the customer to lose $69,633.
FINRA Rule 2111(a) provides in pertinent part that “(a) member or an associated person must have a reasonable basis to believe that a recommenced transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile.” As explained in Supplementary Material 2111.05(c): A violation of FINRA 2111 also constitutes a violation of FINRA Rule 2010, which required associated persons to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.
Without admitting or denying FINRA’s findings, Mack Leon Miller was assessed a deferred fine of $2,500 plus interest in partial restitution to the customer and suspended from association with any FINRA member in all capacities for five months. The suspension was in effect from May 4, 2020, through October 3, 2020.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from excessive trading, and/or unsuitable recommendations by their broker can file claims to recover damages against broker-dealers, like Dawson James and Spartan, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Dawson James and Spartan account due to excessive trading and/or unsuitable recommendations by your broker? Was Mack Leon Miller your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Dawson James and Spartan stockbrokers who may have engaged in broker misconduct and caused investors’ losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.