Christopher Duke Bennett of Louisville Kentucky a stockbroker formerly employed by J.J.B. Hilliard W.L. Lyons LLC is the subject of a customer initiated investment related arbitration claim in which the customer sought $65,000.00 in damages supported by allegations that (1) the customer’s account was churned (2) unauthorized trades were executed by the stockbroker (3) investment recommendations failed to be suitable (4) Hilliard Lyons neglected to supervise Bennett’s trading and (5) the customer had been defrauded on stock and over-the-counter equities transactions. Financial Industry Regulatory Authority (FINRA) Arbitration No. 19-01693 (July 8, 2019).
FINRA Public Disclosure reveals that Bennett is referenced in fourteen additional customer initiated investment related disputes containing accusations of his violative conduct when he was associated with Hilliard Lyons. Specifically, a customer initiated investment related complaint involving Bennett’s activities was resolved for $15,000.00 in damages on February 12, 2019 based upon allegations that over-the-counter equities transactions effected in the customer’s account failed to be suitable for the customer.
On July 24, 2019, another customer initiated investment related complaint concerning Bennett’s conduct was settled for $150,000.00 in damages founded on accusations that the customer’s account lacked diversification; trades were effected on an excessive and unsuitable basis; and the customer had been over-concentrated in speculative and inappropriate unit investment trust, stock and over-the-counter equities products. Bennett is also referenced in a customer initiated investment related arbitration claim where the customer requested $900,000.00 in damages supported by allegations that trades were effected in the customer’s account in excessive amounts; unauthorized transactions were executed by the stockbroker; and trades were in no way suitable for the customer. FINRA Arbitration No. 19-01207 (May 7, 2019).
Another customer initiated investment related arbitration claim involving Bennett’s activities was resolved for $67,000.00 in damages based upon accusations that investment recommendations made by the stockbroker were not suitable; a fiduciary duty was breached; and penny stock and over-the-counter equities transactions were executed in contravention of the Securities Act of Kentucky. FINRA Arbitration No. 19-01378 (June 9, 2019).
FINRA Public Disclosure additionally confirms that Bennett has been fined $5,000.00 and suspended from associating with any FINRA member in any capacity supported by findings that Bennett exercised discretionary authority in Hilliard Lyons customer accounts without written authorization from his customers. Letter of Acceptance Waiver and Consent No. 2017054060301 (Feb. 7, 2019). According to the AWC, seventy-five trades were placed by Bennett without authorization; conduct violative of FINRA Rules 2010 and National Association of Securities Dealers (NASD) Rule 2510(b).
Bennett’s employment with Hilliard Lyons was terminated on October 22, 2018.
