FINRA Suspended New York Broker After Senior Investor Lost More Than $69K
Mack Leon Miller, a Spartan Capital Securities broker in New York, was suspended by the Financial Industry Regulatory Authority (FINRA) earlier this year. The self-regulatory organization (SRO) found that Miller excessively traded in an older investor’s account while he was with Spartan and before that while registered as a broker with Dawson James Securities.
Miller consented to the sanctions but without admitting to or denying the findings. In addition to the suspension, which lasted from May 4 to October 3, 2020, Miller was ordered to pay $2500 in restitution. According to his BrokerCheck record, now that his suspension is over, Mack Miller remains a registered Spartan Capital Securities stockbroker.
At Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com), our New York stockbroker fraud lawyers are looking into claims by current and former customers of Mack Miller who have suffered significant losses. Call our securities law firm at (716) 261-3529 today.
Trading Strategy Was Allegedly Excessive and Unsuitable for Senior Investor
According to FINRA’s findings, Mack Miller first began unsuitably trading in the retiree’s account in 2016 as a Dawson James Securities broker. He then allegedly continued to do so when he moved to Spartan Capital Securities in 2017 until February 2018.
Noting that the elderly customer was an unsophisticated investor who followed Miller’s recommendations, the SRO contends that given the retiree’s portfolio, the New York broker’s trading in this customer’s account was “quantitatively unsuitable.” The trades led to a high turnover rate and cost-to-equity ratio.
FINRA says that the trading strategy was so costly in terms of commissions and fees that it would have been difficult for the retiree to make money from the transactions. It purportedly got to a point that Miller would buy and sell securities in the customer’s account every few days, leading to thousands of dollars in losses. He would then deduct related sales charges. The senior investor’s total losses were $69,633.
As you can see, even with FINRA’s involvement, this churning case did not lead to much restitution for the retiree. This is why it is so important that you have our own broker fraud lawyers pursuing your financial recovery for you, separate from any related regulatory cases.
21 Broker-Dealers in 15 Years
Other firms where Mack Miller has been a registered broker include:
- Lampert Capital Markets
- View trade Securities
- Arjent LLC (expelled by FINRA in 2017)
- Woodstock Financial Group
- Blackbook Capital (expelled by FINRA in 2016)
- Coastal Equities
- John Carris Investments (expelled by FINRA in 2014)
- National Securities
- International Assets Advisory
- Legend Merchant Group (expelled by FINRA in 2012)
- Buckman, Buckman & Reid
- First Merger Capital
- Seaboard Securities (expelled by FINRA in 2011)
- Ridgeway & Conger
- Fordham Financial Management
- Investors Capital
- Great Eastern Securities
- Sky Capital (expelled by FINRA in 2009), and
- PHD Capital
The New York broker has seven other disclosures on his BrokerCheck, including an excessive trading case seeking $20K from May 2017 that was dismissed. In April 2017, Dawson James Securities let him resign after he allegedly contacted a prospective customer in a state where he was not registered as a broker.
A July 2014 customer dispute, also alleging churning and unsuitability, was settled for $7500. While a May 2014 unauthorized trading case was closed due to lack of action. The other disclosures on his record are judgment/liens related to taxes.
Experienced New York Securities Fraud Law Firm
Our securities fraud law firm in New York has been fighting for seniors and other conservative and inexperienced investors for 30 years. We handle securities claims involving elder investor fraud, churning, unsuitable investment recommendations, unauthorized trading, and much more.
Most of our clients have recovered some or all of their losses. Contact SSEK Law Firm today at (716) 261-3529.