Securities Lawyers Blog
The securities attorneys at Gana Weinstein LLP are currently investigating Aeon Capital Inc (Aeon Capital) broker Wayne Miller (Miller). According to BrokerCheck Records held by the Financial Industry Regulatory Authority (FINRA), Miller has been subject to three customer disputes, a regulatory action, and a financial action.
In December 2017, FINRA suspended Miller for failing to properly supervise his firm’s chief compliance officer (CCO) and direct supervisor as the member firm’s president. Miller also failed to respond to red flags that the system of supervision was deficient and that the CCO was not properly supervising the registered representatives of the firm. During the time, a registered representative at the firm was employing an unsuitable “swing trade” strategy by excessively trading mutual fund “A” shares in customer accounts. The CCO informed Miller that one of the registered representatives of the firm was excessively trading mutual fund “A” shares in customer accounts, and Miller did not contact the mutual fund customers – which could’ve led him to learn about 11 of the other affected customers. Miller also failed to properly supervise the CCO – who demonstrated her difficulty with analyzing the firm’s trade blotter and mutual fund switch reports even with the help of a compliance consultant. Consequently, Miller incurred a fine of $10,000 and was suspended for 6 months.
In addition, Miller has been subject to multiple customer complaints. In August 2018, a customer alleged that Miller misrepresented investments, over-concentrated the customer account, breached fiduciary contract and duty, and was negligent with the customer funds. The case was settled at $95,000.
The duty to supervise is a critical component of the securities regulatory scheme. Supervisors are obligated to design and implement security systems and processes that prevent wrongful behavior from occurring. Firms must must respond vigorously to indications of irregularity, commonly referred to as “red flags” of misconduct. Brokerage firms are responsible for monitoring a broker’s investment recommendations to clients, outside business activities, and representations to investors in to ensure that a broker’s interaction with clients is appropriate and to prevent wrongful behavior. Failure to implement systems that can gather information concerning the broker’s interaction with customers creates a high risk for security fraud to occur.
Miller entered the securities industry in June 2004 and has been registered with Aeon Capital since February 2018. From January 2009 to April 2010, Miller was registered with Longview Financial Group, Inc. From December 2004 to January 2005, Miller was registered with USA Investment Management Company. From June 2004 to September 2004, Miller was registered with Woodbury Financial Services, Inc.
Investors who have suffered losses may be able recover their losses through securities arbitration. The attorneys at Gana Weinstein LLP are experienced in representing investors in cases of brokerage firms failure to supervise their representatives. Our consultations are free of charge and the firm is only compensated if you recover