According to publicly available information, former stockbroker and investment adviser Christopher Duke Bennett (CRD# 2510231) was recently barred by FINRA Enforcement following an investigation. As set forth in a Letter of Acceptance, Waiver and Consent (AWC)—pursuant to which Mr. Bennett neither admitted nor denied FINRA’s findings of fact—Mr. Bennett consented to an industry bar following an investigation initiated in January 2019.

Specifically, as alleged in the AWC, “On January 23, 2019, FINRA opened an investigation in response to an amended U5 filed by Hilliard Lyons on January 22, 2019, which identified a customer complaint alleging that Mr. Bennett had conducted trading in [a customer’s] account without her permission.” Further, FINRA’s investigation into the matter “expanded to include additional claims” from other customers alleging misconduct, including purported “unsuitable recommendations.”

Mr. Bennett was a long-time registered representative, having first begun working at J.J.B. Hilliard, W.L. Lyons, LLC in Louisville, Kentucky around December 1995 until his separation from employment in late 2018. Mr. Bennett’s disciplinary history in the securities industry has been checkered, totaling 15 customer disputes. As of the date of this writing, one dispute resulted in an award of $445,000, eight disputes were settled in an aggregate amount exceeding $1.5 million, and five disputes remain pending. In addition, one dispute was denied.

In instances when a broker refuses or otherwise fails to comply with a request by FINRA for information and documents (under Rule 8210), such refusal constitutes a violation of Rule 8210, as well as Rule 2010, which requires FINRA members to “observe high standards of commercial honor and just and equitable principles of trade.” Bennett’s industry bar comes on the heels of a prior investigation by FINRA which concluded in February 2019. With regard to that matter, FINRA’s findings of fact alleged that Bennett “exercised discretionary trading authority in the accounts of several customers, including a senior investor, without express or written authorization from the customers….”

When a stockbroker effects securities transactions in a customer’s account on a discretionary basis—without prior written authority and approval to use such discretion—then the broker is in violation of NASD Rule 2510(b) and FINRA Rule 2010. And in those instances where a broker deviates from Rule 2010, he or she can be held liable for losses suffered by a customer. Moreover, any broker-dealer employing that registered representative may also be held liable for failure to supervise the potential misconduct.

The attorneys at Giarrusso Law Group LLC have significant experience in working closely with investors to resolve all manner of issues concerning investment losses, including losses suffered due to misconduct or negligence by a broker or financial advisor. Investors may pursue a claim to recover monies through securities arbitration before FINRA, or in some instances, through litigation. Investors who wish to discuss a possible claim are invited to contact us by telephone at (201) 771-1115 or by email at info@gialawgroup.com for a no-cost and confidential consultation.