Mack Miller is a currently suspended broker who was last registered with Spartan Capital Securities LLC in New York, New York. FINRA suspended Miller in April, 2020 for an entry of findings that he churned an elderly customer’s account.
Before starting at Spartan Capital Securities (CRD# 146251) in 2017, Miller worked for Dawson James Securities, Inc. (CRD# 130645), Lampert Capital Markets Inc. (CRD# 103725), and others. He had been in the securities industry since 2004 and worked for several firms that have been expelled by FINRA, including Sky Capital LLC (CRD# 114657), Seaboard Securities, Inc. (CRD# 755), Legend Merchant Group, Inc. (CRD# 5155), Blackbook Capital LLC (CRD# 123234), and Arjent LLC (CRD# 131431).
Mack Miller Disclosures
Mack Miller (Mack Leon Miller, Mark Miller, Mack L Miller CRD# 2822317) has 8 disclosures on his publicly-available FINRA BrokerCheck report:
April, 2020: A regulatory filing states “Without admitting or denying the findings, Miller consented to the sanctions and to the entry of findings that he engaged in quantitatively unsuitable trading in the account of a customer who was over 79 years old and retired at the outset of the trading. The findings stated that Miller actively traded the customer’s account, resulting in a high turnover rate and cost-to-equity ratio, as well as significant losses. The trading was unsuitable given the customer’s investment profile. Miller typically purchased and held different stocks for short periods, including for under one week. The costs of the trading strategy, in the form of mounting commissions and fees, made it difficult for the customer to profit from the trades. Then, Miller’s recommended even more active trading in the customer’s account. The trading included instances of Miller purchasing and selling securities within a few days resulting in thousands of dollars of losses after subtracting the associated sales charges. The accumulating costs of Miller’s trading, including commissions and margin interest, made it virtually impossible for the customer to break even, much less profit from the trading. As a result of Miller’s trading, the customer lost $69,633.” The disclosure states that “In light of Miller’s financial status, no monetary sanction and only partial restitution has been imposed.”
April, 2018: A tax judgment/lien in the amount of $4,810.73 is disclosed.
May, 2017: A customer dispute alleges misrepresentation and excessive trading. $20,000 in damages were requested and the claim was denied.
April, 2017: An employment separation after allegations disclosure states that Miller was permitted to resign for an allegation that he “called a prospective customer in a state where he was not registered.”
July, 2014: A customer dispute alleged churning and unsuitability and requested $50,000 in damages. The claim was settled for $7,500.
May, 2014: A customer dispute alleged unauthorized trading and was closed with no action.
May, 2011: A tax judgment/lien in the amount of $1,291 was disclosed.
September, 2008: Aa tax judgment/lien in the amount of $806 was disclosed.
Allegations Of Churning
Mack Miller is accused of “churning”, which is when a broker buys and sells in their customer’s account to generate commissions for themselves and not because the trades are suitable for the customer. Churning is a violation of Federal law and FINRA rules and a common reason for customers to file FINRA arbitration claims.
Churning may also be considered a violation of other laws related to fraud, failure to supervise, a broker’s fiduciary duty, and the requirement that brokers only make suitable trade recommendations.
Quantitative suitability requires a broker 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. This concept is intended to help stop churning recognizing that every dollar in fees, costs and commission is a dollar that has to be made in profits just for the customer to break even. There is rarely a good reason for a financial advisor to be consistently changing the investments in a customer’s portfolio. Moreover, quantitative suitability can be relevant when a financial advisor recommends that a customer concentrate a significant part of their portfolio in a single product, asset class or security.
Contact Silver Law Group If You Have Investment Losses With Mack Miller Or Spartan Capital Securities, LLC
Silver Law Group represents investors nationwide in cases of stockbroker misconduct, including churning. Most cases are taken on a contingent fee basis, meaning nothing is owed unless we recover your money for you. Scott Silver, Silver Law Group’s managing partner, is chairman of the Securities and Financial Fraud Group of the American Association of Justice. Contact us for a no-cost consultation toll-free at (800) 975-4345 or at firstname.lastname@example.org.