Derek Lee Miller of Redondo Beach, CA, a former general securities representative with Securities America, Inc., was permanently barred from association with any FINRA-registered firm in all capacities after failing to appear for on-the-record testimony in connection with FINRA’s investigation into allegations that Miller engaged in unsuitable trading. FINRA Letter of Acceptance, Waiver and Consent, No. 2014043091101 (Aug. 25, 2015).
According to the Acceptance, Waiver, and Consent
FINRA, pursuant to Rule 8210, sent Miller a letter on July 10, 2015, requesting Derek Lee Miller provided on-the-record testimony regarding FINRA’s investigation into allegations of Miller’s unsuitable trading. The AWC stated that Miller sent FINRA an e-mail on July 24, 2015, acknowledging that he received FINRA’s request but would not provide testimony at any point. Consequently, according to the AWC, Miller’s failure to satisfy FINRA’s requests resulted in violations of FINRA Rule 2010 and 8210. Miller was barred by FINRA as a result.
FINRA Conduct Rule 2111 provides that a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile.
A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.
Prior to the recommendation of any security, the broker must first understand the risk and characteristics of the securities being recommended, and whether that security is suitable for any customer. The second step, in connection with the recommendation of a particular investment or investment strategy, is to determine whether the transaction is suitable for that particular customer.
FINRA registered representatives like Derek Lee Miller who do not cooperate with FINRA’s investigations often face a permanent bar from practicing in the securities industry as such lack of cooperation violates FINRA’s Rule 8210 – requiring that no member or person shall fail to provide information or testimony or permit an inspection and copying of books, records, or accounts pursuant to the rule. FINRA typically accompanies a Rule 8210 violation with a Rule 2010 violation when individuals, according to FINRA, do not appear to observe high standards for commercial honor and just and equitable principles of trade.
Public Disclosure Records on Derek Lee Miller
Public disclosure records via FINRA’s BrokerCheck reveal that Miller has been subject to at least 1 customer dispute, where on February 25, 2011, Miller settled a matter for $24,187.15 after a customer alleged misappropriation of funds in March-April of 2006. Additionally, public records reveal that Miller was terminated by discharge from Securities America, Inc. on September 26, 2014, after the firm alleged that Miller failed to follow firm policies and procedures relating to UIT sales practices.
Guiliano Law Group
If you have been the victim of securities fraud and you have a complaint, you should consult with an attorney. The practice of Nicholas J. Guiliano, Esq., and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.
