David Michael Miller, a former registered representative with Huntington Investment Company (Huntington) was named a respondent in a Financial Industry Regulatory Authority (FINRA) complaint alleging unsuitable Unit Investment Trust (UIT) recommendations. The complaint alleges that Mr. Miller, of Columbus, Ohio, had no reasonable basis to recommend UIT purchases which totaled approximately $5.4 million in 129 customer accounts. Further, the complaint alleges that Mr. Miller failed to exercise the necessary due diligence with respect to the UIT recommendations. Specifically, the complaint states that Mr. Miller allegedly did not read the prospectuses, did not know that the underlying closed-end funds were leveraged, and did not know that certain of the closed-end funds invested in junk bonds and that the UIT prospectuses advised that investing in such bonds should be viewed as speculative and subject to numerous risks, including higher interest rates, economic recession, possible downgrades, and defaults of interest and/or principal.
The complaint further alleges that Mr. Miller negligently misrepresented and omitted material facts to customers in connection with their UIT purchases totaling $964,000. Also, Mr. Miller allegedly misrepresented to this particular customer that the UIT investment was “safe,” and that if the customer hold the investment until termination of the trust, he would receive his entire principal investment plus the 5% interest payment received during the term of the trust.
Stockbrokers have been known to engage in many types of practices which may be in violation of industry and firm rules, practices, and procedures. In order to protect investors from such stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a reasonable supervisory system. The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages flowing from the misconduct. Therefore, investors who have suffered losses stemming from the unsuitable recommendations, material misrepresentations, omissions, and/or other fraudulent activity by their broker can bring forth claims to recover damages against broker-dealers like Huntington Investment Company, which should consistently oversee its brokers’ activities in order to prevent the above-described prohibited conduct.
Have you suffered losses in your Huntington Investment Company account due to the unsuitable recommendations and/or misrepresentations of your broker? 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 Huntington Investment Company 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 firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.