Michael B. Barnett of Nashville Tennessee a stockbroker formerly registered with JJB Hilliard WL Lyons is the subject of a customer initiated investment related arbitration claim which was settled for $130,000.00 in damages based upon allegations that the customer had been sold unsuitable Breitburn Energy investments and that a contract between the customer and Hilliard Lyons has been violated. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-01894 (Aug. 8, 2019).
According to the claim, the customer’s account was overconcentrated in bad investments. Transactions ran afoul of Illinois Consumer Fraud Act in addition to Kentucky Consumer Protection Act. The claim also alleges the breach of a fiduciary duty that was owed to the customer.
FINRA Public Disclosure reveals that Barnett has been identified in three additional customer initiated investment related disputes concerning accusations of his misconduct while employed by Hilliard Lyons. He is referenced in a customer initiated investment related arbitration claim in which the customer was awarded $450,000.00 in compensatory damages and $100,000.00 in punitive damages supported by Hilliard Lyons being found liable on the customer’s claims of breach of fiduciary duty in addition to fraud and misrepresentation. FINRA Arbitration No. 16-01819 (Sept. 22, 2017).
The claim alleges that the customer’s blue chip stocks had been sold by the stockbroker and that the proceeds were placed into Breitburn Energy Partners Limited Partnership. The claim indicates that the investment was not consistent with the customer’s risk tolerance and investment objectives and that the overconcentration of the customer’s portfolio in this risky investment had caused the customer to face massive risks. According to the claim, Illinois Securities Act was violated.
On April 3, 2019, another customer initiated investment related arbitration claim involving Barnett’s conduct was resolved for $850,000.00 in damages founded on allegations that unauthorized and unsuitable oil and gas security transactions were effected in the customer’s Hilliard Lyons account. The claim alleges that misrepresentations had been made to the customer regarding those securities. FINRA Arbitration No. 17-03024.
Barnett is also the subject of a customer initiated investment related arbitration claim which was settled for $65,000.00 in damages based upon accusations including that the customer had been defrauded and that their account was negligently supervised by Hilliard Lyons. FINRA Arbitration No. 18-01520 (Apr. 12, 2019). According to the claim, equities transactions were executed on a negligent basis and in violation of Illinois Securities Act. Barnett’s actions allegedly ran contrary to the fiduciary obligation that he owed to the Hilliard Lyons customer.
On October 18, 2019, Barnett’s registrations as stockbroker and investment adviser representative of Hilliard Lyons had been terminated. Since October 18, 2019, he has been a stockbroker and investment adviser representative of Robert W. Baird Co. Incorporated.