Hilary Joseph Zimmerman, of Ridgeland, Mississippi, has been fined and permanently barred in all capacities which require securities registration by the Securities Division of the Mississippi Secretary of State based upon consenting to findings that altered the account documentation of customers, and failed to act in customers’ best interests in reference to customers’ exchange traded funds and other equity transactions. Case No. LS-12-0454-C (Jan. 31, 2017). According to the Consent Order, Mississippi Securities Division found that Zimmerman’s conduct was violative of Mississippi Securities Act Rules 523(B) and Rule 623.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Zimmerman has been identified in six customer initiated investment related disputes containing allegations of his misconduct while employed with Morgan Stanley. Particularly, on May 16, 2000, a customer filed an investment related written complaint involving Zimmerman’s conduct, in which the customer requested $20,000.00 in damages based upon allegations that Zimmerman effected mutual fund purchases in the customer’s account that were misrepresented and unsuitable for the customer.
Subsequently, on June 24, 2013, a customer was awarded $387,856.15 in damages according to an investment related arbitration claim regarding Zimmerman’s actions, based upon allegations that he effected stock trades in the customer’s account on an excessive and unsuitable basis. On July 2, 2014, another customer initiated investment related arbitration claim regarding Zimmerman’s activities was resolved for $440,000.00 in damages based upon allegations that Zimmerman effected unsuitable and excessive transactions in the customer’s account, negligently handled the customer’s investment portfolio, manipulated trading errors, and made misrepresentations concerning investments in the customer’s managed accounts.
Further, on September 18, 2014, a customer initiated investment related civil action involving Zimmerman’s actions was settled for $385,000.00 in damages based upon allegations that Zimmerman made investment related misrepresentations and omissions to the customer, effected excessive exchange traded fund transactions in the customer’s account, breached his fiduciary duties, and defrauded the customer. On December 8, 2014, another customer filed an investment related arbitration claim regarding Zimmerman’s activities in which the customer requested $1,000,000.00 in damages based upon allegations that Zimmerman effected unauthorized and unsuitable equity trades in the customer’s managed investment account.
Additionally, on March 19, 2015, a customer initiated investment related civil action regarding Zimmerman’s activities was resolved for $371,396.00 in damages based upon allegations including that Zimmerman negligently managed the customer’s investment account, breached his fiduciary and contractual duties to the customer, breached his duties of good faith and fair dealing, and violated federal securities laws as well as FINRA rules in reference to leveraged exchanged traded fund transactions effected in the customer’s account.
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