• February 16, 2024
• Crown Capital Securities

David Bruce McMillen (CRD#: 1198070) is a registered broker and investment advisor at Capital Securities, L.P in Boulder, CO.

 

Broker’s Background

 

He entered the securities industry in 1983, and previously worked with First Investors Corporation; Interfinancial Securities, Inc.; The Equitable Life Assurance Society of the United States; Equico Securities, Inc.; The Lincoln National Life Insurance Company; Lincoln Financial Advisors Corporation; SunAmerica Securities, Inc.; and Multi-Financial Securities Corporation.

 

Current and Past Allegations of Conduct Leading to Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in April 2023, David McMillen became the subject of a customer dispute where the customer alleges, “lack of suitability, breach of fiduciary duty and negligence related to the purchase of alternative investments.” The damage amount requested is $125,000 and the customer dispute is still pending.

 

In addition, David McMillen has been the subject of four other disclosures, which include the following:

• March 2018—“Client alleges investment products sold to her were not suitable and have limited liquidity.” The damage amount requested was $5,000 and the customer dispute settled for $250,000.
• December 2017—“Client alleges that their investments cannot be liquidated or their value cannot be ascertained and as a result unable to ascertain their financial position.” The customer dispute settled for $1,500,000.
• October 2015—Financial Disclosure “Compromise.” Satisfied/Released.
• July 2005—“CLIENT ALLEGES THAT REPRESENTATIVE FAILED TO FOLLOW INSTRUCTIONS IN A TIMELY MANNER.” The customer dispute was denied.

 

For a copy of David McMillen’s FINRA BrokerCheck, click here.

 

We Help Investors Recover Investment Losses

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.

 

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

 

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.

 

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

 

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 mwolper@wolperlawfirm.com.