Please call 1-866-817-0201 to discuss potential investment loss recovery for investors of James Fleming. Mr. Flemming previously work for Investors Capital Corp. (“ICC”) and currently works for Questar. Initial consultation with an attorney is free of charge.
As identified by FINRA regulators, between June 2010 and December 2014 (the ”Relevant Period”), Fleming engaged in a pattern of short-term trading of UITs in two customers’ accounts. UITs are investment companies that offer shares of a fixed portfolio of securities in a one-time public offering, and terminate on a specified date. As such, they are not designed to be used as trading vehicles. In addition, UITs typically carry significant upfront charges, and as with mutual funds that carry front-end sales charges, short-term trading of UITs is presumptively improper.
During the Relevant Period, in connection with two customers’ accounts, Fleming repeatedly recommended that the customers purchase UITs and then sell them well before their maturity dates. The UITs that Fleming recommended had maturity dates of 24 months or longer and carried significant sales charges.
Nevertheless, on 177 occasions, Fleming recommended that his customers sell their UIT positions within eight months oftheir purchase. The holding period for the UITs ranges from between three and 235 days, with an average holding period ofonly 96 days. In addition, on several occasions, Fleming recommended that his customers use the proceeds from the short-term sale of a UIT to purchase another UIT with similar investment objectives. Fleming’s recommendations caused the customers to incur unnecessary sales charges, and were unsuitable in view ofthe frequency and cost ofthe transactions.
Regulators suspended Flemming for a period of four months and imposed a $10,000 fine.
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