Christopher Duke Bennett of Louisville Kentucky a stockbroker formerly employed by J.J.B. Hillard, W.L. Lyons 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 Bennett effected unauthorized transactions in accounts of J.J.B. Hillard, W.L. Lyons LLC customers. Letter of Acceptance Waiver and Consent No. 2017054060301 (Feb. 7, 2019).
According to the AWC, from January of 2014 to December of 2015, discretion had been exercised by Bennett in the accounts of four J.J.B. Hillard W.L. Lyons LLC customers, one of which included an elderly investor. Supposedly, a total of seventy-five trades had been executed by Bennett in the four customers’ accounts on a discretionary basis. The AWC stated that customers had not provided Bennett any written authorization for Bennett to exercise discretion in their accounts. Additionally, the firm reportedly never authorized those accounts for discretionary trading. Consequently, FINRA found that Bennett’s conduct was violative of FINRA Rule 2010 and NASD Rule 2510(b).
FINRA Public Disclosure reveals that Bennett is referenced in eleven more customer initiated investment related disputes containing accusations of his misconduct during the time that he was associated with J.J.B. Hillard W.L. Lyons, LLC. Particularly, a customer filed an investment related arbitration claim concerning Bennett’s activities where the customer requested $5,000,000.00 in damages supported by allegations of fiduciary duties being breached, misrepresentations being made concerning oil and gas investments; and unsuitable securities transactions being executed in the customer’s investment portfolio. FINRA Arbitration No. 18-00800 (Jan. 26, 2018).
Bennett was also subject of a customer initiated investment related arbitration claim in which the customer was awarded $445,000.00 in damages based on the arbitrator finding Bennett and the firm liable for having churned the customer’s account; negligently transacted in the customer’s account; misrepresented the terms and conditions of investments; placed transactions in the customer’s account that were not suitable for the customer; breached fiduciary duties to the customer; effected unauthorized trades in the customer’s account; and defrauded the customer in regard to the customer’s retirement accounts. FINRA Arbitration No. 17-00750 (Feb. 16, 2018).
Thereafter, a customer initiated investment related complaint involving Bennett’s activities was settled for $470,000.00 in damages based upon accusations that Bennett made unsuitable investment recommendations to the customer in regard to oil & gas, stock and over-the-counter equities products that had been purchased for the customer’s account. Another customer filed an investment related arbitration claim regarding Bennett’s conduct where the customer sought $160,000.00 in damages founded on allegations of negligent supervision; misrepresentation; omission; negligence; breach of contract; violation of Kentucky Securities Act; breach of fiduciary duty; and fraud in regard to Breitburn Energy investments purchased for the customer’s account. FINRA Arbitration No. 18-02221 (June 25, 2018).
Subsequently, on November 21, 2018, a customer filed an investment related complaint concerning Bennett’s activities in which the customer requested damages estimated to exceed $5,000.00 supported by accusations of suitability and unauthorized trading of oil & gas, stock, and over-the-counter equities products. On January 6, 2019, another customer filed an investment related complaint regarding Bennett’s conduct where the customer sought $559,429.00 in damages based upon allegations that the customer’s investment account was over-concentrated in speculative and unsuitable investments; the account had been churned; and trades were placed without the customers consent.
Moreover, on January 7, 2019 a customer initiated investment related written complaint involving Bennett’s conduct was resolved for $15,000.00 in damages founded on accusations that between November 1, 2014 and November 20, 2018, Bennett executed over-the-counter equities and stock trades in the customer’s account without procuring the customer’s consent; and Bennett charged the customer unwarranted, excessive commissions on the trades placed in the customer’s investment account.
Bennett’s registration with J.J. B. Hillard W.L. Lyons LLC has been terminated as of October 22, 2018.
