- November 4, 2020
- American Asset Advisory LLC
- Breach of Fiduciary Duty
- Unauthorized Trading
Wayne Miller (CRD # 4813645) is a Financial Advisor at Aeon Capital Inc. in Scottsdale, AZ. Wayne Miller has been in the securities industry since 2004 and previously worked at American Asset Advisory, LLC, Accelerated Capital Group, and Longview Financial Group, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), since 2016 Wayne Miller was the subject of six (6) customer complaints, alleging sales practice misconduct:
• September 2020—”Unsuitable placements of Alternative Investments by a Registered Representative while acting as a control person for ACG.” Alleged damages are $13,204,427.00 and the matter remains pending.
• November 2019—”Claims of breach of fiduciary duty, negligence, Breach of contract in private placement offerings purchased in 2013 and early 2014.”
• October 2019—”From approximately 2016 – March 2018; claimants allege breach of fiduciary duty and negligence in reference to private placement offerings purchased.” Alleged damages are $620,000.00 and the matter remains pending.
• August 2018—”Claimants are alleging negligence, over-concentration, breach of fiduciary duty, material misrepresentation and omissions and failure to supervise.” The matter settled for $95,000.00.
• June 2018—”THE ARBITRATION DOCUMENTS ALLEGE BREACH OF FIDUCIARY DUTY, VIOLATION OF THE FEDERAL SECURITIES LAWS, CONTROL PERSON LIABILITY UNDER SECTION 20 OF THE SECURITIES & EXCHANGE ACT OF 1034; VIOLATION OF THE CALIFORNIA CORPORATION SECURITIES LAWS; VIOLATION OF THE FINRA RULES 1020, 2120, 2111 AND 3110; NEGLIGENCE AND NEGLIGENT SUPERVISION.” The matter settled for $110,000.00.
• January 2016—” UNAUTHORIZED TRADING AND EXCESSIVE TRADING.” The matter sttled for $165,000.00.
For a copy of Wayne Miller’s CRD, click here
Alternative investments, or private placement investments, is a broad term that describes securities that are not offered for sale through a public exchange. These can include promissory notes, private equity offerings, small, start-up businesses, etc. Alternative investments are often issued under Regulation D under the Securities Act of 1933. Regulation D provides exemptions from the more rigorous Securities and Exchange Commission (SEC) registration requirements and allows companies to offer and sell securities without extensive disclosures. The absence of standard disclosure requirements often creates.
The Securities Exchange Commission, federal courts, and FINRA have all found that brokerage firms have a duty to conduct a reasonable investigation concerning the private placements issuer’s representations concerning the security. A brokerage’s firm’s due diligence obligation also stems from suitability obligations requiring the broker to have reasonable grounds to believe that a recommendation to purchase, sell or exchange a security is suitable for the customer. In order to meet the due diligence obligation, the brokerage firm and/or financial advisor must make reasonable efforts to gather and analyze information about the private placement, the issuer and its management, the business prospects of the issuer, the assets held by or to be acquired by the issuer, the claims being made by the issuer in the offering materials, and the intended use of proceeds of the offering. The failure to determine this and other material information would necessarily preclude a financial advisor from disclosing to a customer the material aspects of a transaction.
In addition to the customer complaint disclosures listed above, on December 13, 2017, Wayne Miller was suspended six months and fined $10,000.00 by FINRA. According to the allegations “Without admitting or denying the findings, Miiller consented to the sanctions and to the entry of findings that as his member firm’s president, he failed to reasonably supervise the firm’s chief compliance officer (CCO) and direct supervisor for all registered representatives at a branch office of his firm.
For a copy of Wayne Miller’s FINRA disciplinary action click here
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at firstname.lastname@example.org.