Christopher Robert Hickman, of Delray Beach, Florida, a stockbroker formerly registered with Cetera Advisors LLC, has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he effected unsuitable unit investment trust trades in customer accounts. Letter of Acceptance, Waiver and Consent, No. 2015046087601 (June 9, 2017).
According to the AWC, from May of 2011 to April of 2014, Hickman executed an investment strategy in six customer accounts that involved the trading of unit investment trusts on a short-term basis. Apparently, these unit investment trusts contained substantial upfront fees and as a result, were not meant to be part of a short-term trading strategy. Despite this, Hickman evidently made recommendations for customers to buy unit investment trust products, only to recommend that the products be sold within a year. Customers reportedly held positions in the products for one-hundred and thirty-six days on average.
Furthermore, Hickman made recommendations that the unit investment trust proceeds be reinvested into other similar unit investment trusts; some products even contained the same investment objectives. The AWC revealed that customers collectively lost $115,989.75 by following the recommendations that Hickman made. Hickman was terminated on July 2, 2015, based upon allegations of trading fixed-income securities on a short-term basis in customer accounts. FINRA ultimately found Hickman’s conduct to be violative of FINRA Rules 2010 and 2111.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Hickman has been identified in seven customer initiated investment related disputes containing allegations of his wrongdoing while associated with Raymond James Financial Services, Banc of America Investment Services, AG Edwards & Sons, Inc, and Cetera Advisors LLC.
Specifically, on January 25, 2008, a customer initiated investment related arbitration claim involving Hickman’s conduct was settled for $32,500.00 in damages based upon allegations that he placed options trades in the customer’s account even though the transactions were neither authorized nor suitable for the customer. Further, on August 8, 2010, a customer initiated investment related arbitration claim regarding Hickman’s activities was resolved for $650,000.00 in damages based upon allegations that he effected unsuitable stock trades in the customer’s investment account.
On October 22, 2010, another customer initiated investment related arbitration claim involving Hickman’s conduct was settled for $75,000.00 in damages based upon allegations that he traded corporate debt and stocks in the customer’s brokerage account without consent of the customer. Moreover, on April 27, a customer filed an investment related arbitration claim regarding Hickman’s activities wherein the customer requested $265,000.00 in damages based upon allegations that Hickman committed elder abuse, breached his contractual and fiduciary obligations, and negligently handled the customer’s investment portfolio.
Hickman’s registration with Cetera Advisors LLC was terminated on July 2, 2015.
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