ATTENTION INVESTORS: FINRA Fines, Suspends Hillard Lyons Broker CHRISTOPHER BENNETT

The Financial Industry Regulatory Authority (“FINRA”) suspended J.J.B. Hilliard, W.L. Lyons LLC broker Christopher Duke Bennett (CRD#: 2510231, Louisville, Kentucky) for exercising discretion in investment accounts without written authorization. Evidently, Bennett executed a Letter of Acceptance, Waiver and Consent (“AWC”) #2017054060301 on December 17, 2018, accepted by FINRA on February 7, 2019. The AWC stated that Bennett violated NASD Rule 2510(b) and FINRA Rule 2010.
Notably, Bennett’s unauthorized trading started on January 2014 and transpired through December 2015. Apparently, Bennett made seventy-five trades in four Hilliard Lyons customer accounts. However, customers did not authorize Bennett to make trades when he made them. Also, the customers did not provide Bennett written approval to make discretionary trades. Not only that, but Hilliard Lyons did not provide written authorization to Bennett, so he was not allowed to exercise discretion in the customers’ accounts. Because of this, Bennett agreed to FINRA’s sanctions, including a fine of $5,000 and temporary suspension in all capacities.
But that’s not all. Bennett reports through FINRA BrokerCheck that at least 10 customers filed complaints about him. Evidently, customers brought these claims from October 25, 2016 to January 6, 2019, just shy of the time FINRA proceeded with disciplinary action against Bennett. Here is a summary of those complaints:

January 6, 2019 Complaint Alleging Christopher Bennett’s Churning Of Unit Investment Trusts

On January 6, 2019, a customer of Hilliard Lyons filed a complaint about Bennett. Primarily, the customer claimed that Bennett made unauthorized trades. Additionally, the customer contended that the trades were not suitable. Allegedly, Bennett over-concentrated the customer’s assets in OTC equities, unit investment trusts and stocks. Moreover, the customer claimed that Bennett churned the customer’s investments. Because of this, the customer requested $559,429 in compensation in this pending matter.

November 21, 2018 Complaint Alleging Christopher Bennett’s Unauthorized Trading

The complaint dated November 21, 2018 came from another Hilliard Lyons customer. Allegedly, the customer did not provide Bennett permission to make OTC equities, stock, and oil and gas trades. Not only that, but the customer claimed that Bennett invested the customer’s assets in products that did not match the customer’s suitability profile. As a result, the customer alleged compensatory damages which are TBD.

November 20, 2018 Arbitration Alleging Christopher Bennett’s Fraud

On June 14, 2018, a customer of Hilliard Lyons brought a claim concerning Bennett and the firm’s harmful acts. Firstly, the customer claimed that Bennett and Hilliard Lyons breached a fiduciary duty. Secondly, Bennett and the firm allegedly broke Kentucky securities laws, and victimized the customer by engaging in fraudulent activities. Also, the customer claimed that Hilliard Lyons negligently supervised the customer’s investment purchases. Supposedly, the customer’s OTC equities and oil and gas investments declined in value by $160,000, as the customer alleged that amount in compensatory damages in this ongoing matter.

April 3, 2018 Complaint Alleging Christopher Bennett’s Unsuitable Securities

Additionally, a Hilliard Lyons customer contested Bennett’s sales practices through filing a complaint dated April 3, 2018. Supposedly, Bennett made unreasonable and unsuitable investment recommendations. Allegedly, Bennett gave the customer bad advice from 2013 to 2015 regarding OTC equities and oil and gas investments. Eventually, Hilliard Lyons settled the customer’s claim by paying the customer $470,000. Notably, Bennett contributed $70,500 to the settlement of the customer’s suitability claim.

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