According to the Wall Street Journal, the Massachusetts State Securities Regulator is going after Brookville Capital Partners and two of their brokers accused of churning. Allegedly, brokers Ali Habib Mayar and Christopher F. Veale were excessively trading on the account of an 81-year investor and concealing the transaction fees.
The State of Massachusetts complaint alleges abusive sales practices and churning in 310 transactions by the brokers between 2010 and 2012. The excessive trading cost the investor more than $300,000 in commissions and hidden markups alone. The turnover ratio was purportedly over 200%. In addition, the complaint alleges the client lost nearly $1.6 million and accuses Brookville Capital Partners of failure to supervise. Massachusetts regulators seek to revoke the license of the two brokers and to ban Brookville Capital Partners from selling securities in the state.
According to the Financial Industry Regulatory Authority (FINRA) both brokers have been involved in multiple customer disputes. FINRA’s BrokerCheck report for Christopher F. Veale shows he has worked for 18 different brokerage firms since he began his career in 1995. He worked with Brookville Capital Partners from 01/2009 – 06/2012. Since then he has worked for Blackwall Capital Markets, Meyers Associates, John Thomas Financial, and currently works with Legede Securities.
Ali Habib Mayar’s BrokerCheck report indicates he is currently employed by Brookville Capital Partners, and has been since 7/2009. He previously worked with Whitaker Securities, Granite Associates, Ladenburg, Thalmann & Co., and Ladenburg Capital Management.
The foregoing information, which is publicly available, is being provided by The White Law Group. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida. The firm has represented numerous clients in churning claims similar to those discussed above.
When brokers engage in unsavory business practices that violate securities laws and regulations, they may be responsible for investment losses. In some cases the brokerage firm may be liable for investment losses due to negligently supervising the fraudulent or inappropriate actions of their employees.
If you believe that you are the victim of churning, The White Law Group may be able to help. To discuss your litigation options with a securities attorney, please call(312)238-9650 for a free consultation.
Read more about churning, here, or to watch an informative video, here.
For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.