Mack Leon Miller Suspended by FINRA for Excessive and Unsuitable Trading (1)Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor Mack Leon Miller (CRD # 2822317) was recently suspended from the securities industry by FINRA’s Department of Enforcement. The suspension occurred during the course of an investigation into excessive and unsuitable trading (“churning“). The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Miller.

Registration Background for Mack Leon Miller

Mr. Miller first became registered in the securities industry in 2004 and was most recently registered with New York, NY based Spartan Capital Securities, LLC (CRD # 146251). His prior registrations include Dawson James Securities, Inc. (CRD# 130645) from May 2016 to April 2017, Lampert Capital Markets, Inc. (CRD # 103725) from November 2015 to May 2016 and Viewtrade Securities Inc. (CRD # 46987) from August 2015 to November 2015.

FINRA’s Finding and Conclusions

According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated April 9, 2020, Mr. Miller consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:

  • From August 2016 through March 2017, while associated with Dawson James, and then from May 2017 through February 2018, while associated with Spartan, [Mr.] Miller engaged in quantitatively unsuitable trading in the account of a customer who was over 79 years old and retired…”;
  • [Mr.] Miller recommended virtually all of the trading in the customer’s account”;
  • The customer, a retired professor of cartography, lacked sophistication as an investor, and routinely followed [Mr.] Miller’s recommendations”;
  • As a result, [Mr.] Miller exercised de facto control over the customer’s account”;
  • Miller actively traded the customer’s account, resulting in a high turnover rate and cost-to-equity ratio, as well as significant losses. The trading was unsuitable given the customer’s investment profile”; and
  • By virtue of the foregoing, Mr. Miller violated FINRA Rule 2111 regarding suitability and FINRA Rule 2010, which requires associated persons, in the conduct of business, to “observe high standards of commercial honor and just and equitable principles of trade.

FINRA Sanctions Mack Leon Miller

As a result of such violations and in addition to the above described findings and conclusions, FINRA’s April 9, 2020 AWC also indicates that Mr. Miller consented to the following sanction(s):

  • A suspension from associating with any FINRA member in any capacity for five months; and
  • Partial restitution in the amount of $2,500.00 plus interest.

Mack Leon Miller has a History of Complaints

In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Miller reveals he has a history of customer complaints including but not necessarily limited to the following:

  • On July 21, 2014 a customer initiated complaint was filed alleging churning and unsuitability. The customer alleged damages in the amount of 50,000.00. The complaint was eventually settled on August 18, 2014 in the amount of $7,500.00;
  • On April 17, 2017 a customer initiated complaint was filed alleging misrepresentation and excessive trading. The complaint alleged damages in the amount of $20,000.00. On March 4, 2019, the complaint was denied; and
  • On May 26, 2014 a customer initiated complaint was filed alleging unauthorized trading without specifying an amount in damages. On August 4, 2014, the complaint was denied.

If you or someone you know has or had a brokerage account with Mr. Mack Leon Miller and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.