Gana Weinstein LLP, a nationally recognized securities arbitration boutique, is investigating Benjamin F. Edwards & Company, Inc. (“BFE”) in connection with the firm’s supervision of its former registered representative Aon D. Miller.
From November 2011 through September 2012, it is alleged that Aon D. Miller, participated in five different securities transactions with three different entities in which four of his customers invested a total of approximately $1,550,000. According to FINRA, who is also investigating Mr. Miller, he failed to inform Benjamin F. Edwards of his outside business activities as he was required to do. Aon Miller allegedly participated in three separate entities outside of his employment with Benjamin F. Edwards. The three entities at issue are: i) CDP, a real estate development company; KBI, a specialty chemical company, and iii) CTL, a company that refinanced senior secured debt.
According to FINRA, the above mentioned transactions resulted in a violation of FINRA Rule 2010 and and selling away, a violation of FINRA Rule 3040. FINRA Rule 2010 states in relevant part that “A member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade.” FINRA Rule 3040 states in relevant part that “prior to participating in any private securities transaction, an associated person shall provide written notice to the member with which he is associated describing in detail the proposed transaction and the person’s proposed role therein…”
Under the rule, a private securities transaction is “any securities transaction outside the regular course or scope of an associated person’ s employment with a member.” FINRA Rule 3040 makes clear that a representative need not receive compensation to
violate the rule, however it is believed that Mr. Miller did in fact receive compensation.
Between April and September 2012, it has been alleged that Miller participated in at least five private securities transactions with three different entities in which four of his Benjamin F. Edwards customers invested a total of $1,550,000.
If you or someone you know invested with Aon D. Miller or Benjamin F. Edwards & Company, Inc. you should contact Gana Weinstein LLP immediately. Our attorneys specialize in securities litigation and arbitration nationally. Our investigation of Aon D. Miller and Benjamin F. Edwards & Company, Inc. is ongoing and the information you provide can go a long way to determining whether they violated FINRA Rules. Our team has represented hundreds of investors and recovered millions of dollars through settlement and verdict. All consultations are confidential and our attorneys will forensically analyze your accounts to determine whether there has been misconduct.