Regulators accuse Mack Leon Miller of recommending excessive trading to two of his investors. Miller made the recommendations between October 2019 and April 2022. The recommendations violated Miller’s obligations under Reg BI.
The common term to refer to excessive trading was “churning.” With Regulation BI, there is no requirement that the financial adviser have practical control over the account. Reg BI establishes that a “best interests” standard of conduct for financial advisors and their employers when in dealing with their investors.
Miller’s trading generated $32,230 in commissions and resulted in $71,022 in realized losses. One of the customers relied on Miller’s advice and routinely followed his recommendations, and, as a result, Miller exercised de facto control over that customer’s account. Regulators suspended Miller from the financial industry for nine months.
The history of Miller is checkered. In light of this, regulators and industry standards require his employer to give Miller heightened supervision since at least 2020.
This post intends to educate the public on common investment fraud and highlight current regulatory actions as examples.
Jeffrey Pederson successfully represented hundreds of investors in related suits. He helped his clients recover tens of millions of dollars over his career. Reuters named him as a “SuperLawyer” each year from 2020 through 2025. Contact him to discuss this post or questions concerning Regulation BI.
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