Securities Arbitration Lawyers BlogFINRA Suspends Christopher Bennet After Unauthorized Trading
Christopher Duke Bennet (CRD#: 2510231) is a former registered broker and investment advisor whose last employer was J.J.B. Hilliard, W.L. Lyons, LLC (CRD#:453) of Louisville, KY. He began with Lyons in 1995, and worked solely for the firm until 2018. No current employment information is available. There is no indication that he is retired, or is working with another broker-dealer.
Bennet is the subject of 14 disclosures that begin in 2016, most of which are customer disputes. Bennet has a total of seven pending customer claims, four settlements, one award, and one claim which has been denied.
On 2/1/2019, FINRA suspended Bennet after allegations that between January of 2014 and December of 2015, he “exercised discretion.” This means that Bennet traded in customer accounts without seeking authorization or written permission of either the customers or the firm, Hilliard Lyons.
Four customers were involved, including one described by FINRA as a “senior investor.” Bennet conducted approximately 75 of these trades in the four accounts. FINRA suspended Bennet for 15 days, and fined him $5,000. Bennet has not stated that he is unable to pay the fine, but there is no record that he has paid it yet. He signed an Acceptance, Waiver & Consent letter (AWC) on December 7, 2018, and the suspension became active on February 4th.
Although Bennet resigned from Hilliard Lyons in October of 2018 and not currently registered with any other FINRA broker-dealer, he remains under FINRA’s jurisdiction.
There are two pending claims filed in the early part of 2019, totaling nearly $700,000. The first claim was filed on 01/06/2019, requesting damages of $559,429.00, with allegations of “unauthorized trading, unsuitability, overconcentration, churning, and lack of diversification.” The second claim was filed shortly after he was suspended, on 2/27/2019, alleging “violation of the Securities Act of Kentucky, breach of fiduciary duty, and unsuitable investment recommendations,” and requests damages of $139,214.00.
Of the six customer disputes filed in 2018, three were settled, and three are listed as “pending.” All of these complaints share similar allegations of unsuitability of investments, unauthorized trading, churning, breach of contract and fiduciary duties, negligence, and other related misconduct. Pending damages total $5,175,000.
Three similar disputes were filed in 2017, with one settlement of $350,000, and two pending with damages of $330,713.07 requested.
A dispute filed in 2016 went into arbitration, with allegations of unauthorized trading. The client requested $225,000, and was awarded $445,000.00 by FINRA, to be paid by Bennet and Hililiard Lyons.
Did You Invest With Christopher Bennet?
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