If you have suffered losses with Christopher Duke Bennett of J.J.B. Hilliard, please call 303-300-5022. Victims may receive a free and confidential consultation with an attorney. Bennett is accused of participating in systemic fraud of his investors.
Bennett engaged in unauthorized trading, or churning. This is where a broker makes trades in an account to effectuate commissions for himself without regard for the investor. Between January 2014 and December 2015, Bennett violated federal and state securities laws by exercising discretionary trading authority in the accounts of several customers without written authorization, in violation of NASD Rule 2510(b) and FINRA Rule 2010. This was the grounds for a regulatory action filed against Bennett by the Financial Industry Regulatory Authority (FINRA).
Between January 2014 and December 2015, Bennett made unauthorized trades in the accounts of four customers, one of whom was a senior investor, by placing approximately 75 total trades in those accounts. A broker is required to speak to an investor contemporaneously to a trade, or have written authorization that the broker has authority to make a trade at the broker’s discretion. Bennett did not obtain express authorization from those customers for those trades prior to placing them, did not have written authorization from the customers to exercise discretionary authority in those accounts, and neither sought nor obtained from Hilliard Lyons prior written acceptance of the accounts as discretionary.
To date, at least 10 of Bennett’s former clients have filed suit, via FINRA arbitration, seeking redress.