Securities Lawyers Blog
The securities attorneys at Gana Weinstein LLP are currently investigating Royal Alliance Associates, Inc. (Royal Alliance) broker Gregory Hill (Hill). According to BrokerCheck Records, Hill has been subject to one pending customer dispute and tax lien. In addition, Hill has been subject to termination from employment. The majority of these concerns allege the firm’s failure to supervise.
In August 2017, a customer alleged that Hill’s firm of employment failed to supervise Hill’s inappropriate sale of a variable annuity to the customer. The client has requested $1,185,056 in damages. This dispute is currently still pending.
In addition, in December 2010, ING Financial Partners, Inc. terminated Hill for failing to report his three tax liens on the U4 form. Hill has also been subject to a tax lien. In June 2010, Hill incurred a tax lien of $86,263.
Large tax liens are a potential sign that the advisor has difficulty managing their own finances. The Financial Industry Regulative Authority (FINRA) provides this information to the public because it is material for consumers to know whether or not their advisor’s financial situation influences the advisor’s recommendations.
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.
The product at issue at Royal Alliance was variable annuities, which have been closely watched by regulators dues to the complexity of the product and high fee structures. Elderly investors have often been sold variable annuities, just so that brokers could earn increased commissions. Regulators have paid especially close attention to those advisors who have switched their clients from one variable annuity to another, just to enhance their commissions.
Hill entered the securities industry in 1982 and has been registered with Royal Alliance since December 2001. From September 2004 to December 2010, Hill was registered with ING Financial Partners, Inc. From January 2002 to September 2004, Hill was registered with Interlink Securities Corp. From September 1982 to December 2001, Hill was a registered representative at Tower Square Securities, 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