ICHAEL BARNETT Sell You Unsuitable Investments?
Have you invested with JJB Hilliard WL Lyons LLC general securities representative Michael Barnett (CRD#: 5792242, Marion, Illinois)? It appears from Financial Industry Regulatory Authority (“FINRA”) BrokerCheck that Barnett may have sold unsuitable alternative investments. Soreide Law Group is evaluating possible investor claims against Barnett given this information. Here is a closer look at some of the serious allegations clients made against him:
JJB Hillard WL Lyons Client Brings Arbitration Claim Against Michael Barnett
Evidently, this JJB Hilliard WL Lyons client filed FINRA Arbitration #: 18-01894 on June 4, 2018. First of all, the client claimed that Michael Barnett breached both a contract and a fiduciary duty to the client. Supposedly, Barnett did not comply with the client’s investment agreement, and placed his interests ahead of the client’s interests. Also, the client alleged that Barnett violated securities laws including the Kentucky Consumer Protection Act, Kentucky Blue Sky Law and Illinois Consumer Fraud Act. Apparently, the client’s claim relates to Barnett overconcentrating the client’s investments in Breightburn Energy Partners. Allegedly, it was not suitable for the client to be invested in those speculative investments. Because of this, the client asked for $30,737.61 in compensation in this ongoing matter.
JJB Hillard WL Lyons Settles Client’s Misrepresentation, Fraud Claim
Next, a client of JJB Hilliard WL Lyons disputed Michael Barnett’s sales practices in bringing FINRA Arbitration #:18-01520. This matter is similar to the most recent claim in that the client alleged breached of fiduciary duty, breach of contract, fraud and violations of Illinois securities laws. However, this client also claimed that Barnett misrepresented or omitted facts about investments. Allegedly, the client would not have purchased those investments if all important facts were known at the time of purchase. In addition, JJB Hilliard WL Lyons allegedly failed to supervise Barnett. This lack of supervision supposedly caused Barnett’s sales practice violations. All things considered, on April 12, 2019, JJB Hilliard WL Lyons agreed to pay the client $65,000 in settle the matter.
Investor’s Arbitration Claim Suggests Michael Barnett Put Client In Unsuitable Oil And Gas Investments
Also, the broker reported that a third JJB Hilliard WL Lyons client brought suit over Michael Barnett’s sales practices. Apparently, in FINRA Arbitration #: 17-03024, filed November 22, 2017, the client alleged Barnett misrepresented information concerning oil and gas investments. The client stated that those investments were not fitting or suitable for the client. Furthermore, Barnett allegedly traded without the client’s authorization. Eventually, JJB Hilliard WL Lyons paid this client $850,000 to put this matter to rest. Notably, Barnett personally contributed towards this settlement.
Investor Obtains Arbitration Award After Bringing Claim About Barnett’s Actions
FINRA BrokerCheck shows a FINRA Arbitration Panel issued an Award against JJB Hilliard WL Lyons in FINRA Arbitration #16-01819. Evidently, the Panel determined JJB Hilliard WL Lyons responsible for negligence, breach of contract, misrepresentation, fraud, and failure to supervise. Allegedly, Michael Barnett (the subject of this Arbitration) sold the client’s stocks and allocated all the client’s money in Breightburn Energy Partners LP. Evidently, the investment in this very aggressive oil and gas company was not suitable. Plus, by overconcentrating the client’s assets, Barnett caused the client to take on risk that far exceeded the client’s conservative risk profile. Because of this, on September 22, 2017, the Panel required JJB Hilliard WL Lyons to pay the client $550,000 in damages, $100,000 of which were punitive.
Experienced losses by investing with securities broker Michael Barnett? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.