Securities Lawyers Blog
The investment lawyers at Gana Weinstein LLP have experience helping investors determine whether their portfolio losses at investment firms, such as Hightower Securities, LLC, were caused by broker misconduct. There are many different ways that your broker can impermissibly drain your accounts. Our attorneys can help you understand the cause of your investment losses, uncover misconduct, and apply the law to hold accountable those responsible.
Hightower Securities is the broker-dealer affiliate of Hightower Advisors, a wealth management firm that provides financial planning, investment advisory, and brokerage services to individuals and families. Registered with the SEC since 2002 and headquartered at 200 West Madison in Chicago, the firm is part of a privately held Hightower platform founded in 2007 with more than 130 locations across the United States.
Hightower Securities, LLC – By the Numbers:
- CRD #: 116681
- Regulatory Events: 5
- Arbitration Events: 1
- Broker Employees: 623
Hightower Securities, LLC – In the News:
FINRA v. Hightower Securities, LLC (Case #2018060896601) – Between May 4, 2018, and June 29, 2018, Hightower Securities negligently failed to tell 16 investors in an offering related to GPB Capital Holdings, LLC (GPB Capital) that the issuer failed to timely make required filings with the Securities and Exchange Commission, including filing audited financial statements. By virtue of the foregoing, Hightower Securities violated FINRA Rule 2010. Between March 18, 2016, and February 8, 2018, Hightower Securities failed to reasonably supervise certain representatives’ recommendations of an alternative mutual fund—the LJM Preservation & Growth Fund (LJM). Hightower Securities permitted the sale of LJM on its platform without having written supervisory procedures requiring the firm to conduct due diligence on alternative mutual funds to ensure that the firm and its representatives had a sufficient understanding of the product’s unique risks and features, including the fact that the fund pursued a risky strategy that relied, in part, on purchasing uncovered options. Hightower Securities also lacked a reasonable supervisory system to review its representatives’ LJM recommendations. Specifically, Hightower Securities representatives sold $190,000 in LJM to three customers. LJM’s value dropped 80% during an extreme volatility event in February 2018 and the fund ultimately liquidated and closed, resulting in thousands of dollars in losses for those customers. By virtue of the foregoing, Hightower Securities violated FINRA Rules 3110 and 2010.
Our attorneys have successfully represented hundreds of investors in investment disputes with their brokers and brokerage firms. Our consultations are free and we welcome all inquiries.