Brett S. Murphy, Boca Raton, Florida-based Revere Securities Broker Under Investigation Over Allegations of Churning in Unit Investment Trusts

Silver Law Group is investigating Boca Raton, Florida-based Revere Securities LLC (CRD# 14178) broker Brett S. Murphy (CRD# 2434384) over allegations that Murphy excessively traded unit investment trusts (“UITs”) in a customer’s account.

According to Scott’s FINRA BrokerCheck report, a customer filed a complaint against Scott alleging Scott churned the customer’s account in UITs and that the UITs were unsuitable.  Further, the customer alleges that Scott’s employing firm, Oppenheimer & Co. Inc. (CRD# 249) as well as Revere Securities, failed to supervise Scott.

Oppenheimer employed Scott from July 2011 to March 2015 at its Palm Beach Gardens, Florida locations.  Scott then moved further south to Revere Securities in Boca Raton, Florida where he is currently employed.

A UIT is an investment company that offers a fixed portfolio, generally of stocks and bonds, as redeemable units to investors for a specific period of time.  They are designed to provide capital appreciation and/or dividend income.  UITs are similar to mutual funds except mutual funds are open-ended and the portfolio manager can buy and sell securities in the portfolio.  UITs, instead, feature a portfolio with investments that are fixed.

When a customer opens an account with a broker and brokerage firm, the customer can choose whether or not he or she wants to give the broker to trade discretionarily in order to capitalize as quickly as possible on an ever-changing market.  Often times, customers choose to reserve that right and have the final “OK” before a broker facilitates a transaction.

Unauthorized trading is when a broker facilitates a transaction without the permission of the customer in a non-discretionary account.  According to FINRA, it is one of the common investor issues along with misrepresentation, cold-calling, and unsuitability.

Often times, unauthorized trading is accompanied by churning.  Churning occurs when the account is frequently trades for no apparent reason but to generate fees and commissions.

Unauthorized trading and churning are serious forms of broker misconduct.  A broker’s employing firm is responsible for overseeing the broker to prevent such misconduct.  Failure to supervise is a claim made against a brokerage firm in these situations.

FINRA arbitration is a fast, efficient way to recover your lost investment funds.  We work on a contingency fee basis, meaning you pay us nothing unless we win and recover money for you.

If you have invested with Brett S. Murphy and Oppenheimer & Company or Revere Securities and have lost money doing so, you may be able to recover some or all of your losses.  Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct through FINRA arbitration.

Silver Law Group represents the interests of investors who have been the victims of investment fraud.  If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.