Securities law firm Carmel, Milazzo & DiChiara LLP (CMD) is investigating claims against securities broker Glenn King and brokerage firm Buckman, Buckman & Reid, Inc. for unsuitable recommendations, excessive trading (a/k/a churning) and failure to supervise.
In August 2016, Glenn King was barred from association with any FINRA member. The sanction was based on findings that Glenn Robert King fraudulently misrepresented and omitted material facts to customers, recommended and executed unsuitable transactions in customer accounts, and exercised discretion in customer accounts without authority and his member firm’s approval. The findings stated that Glenn Robert King used telephone and email to knowingly and willfully make numerous false statements to customers, and omitted material information in connection with his sales of Unit Investment Trust (UITs) to the customers. Glenn Robert King sold UITs to elderly and retired customers of the firm by misrepresenting to them that he was offering safe, high-yield, tax-free bonds and CDs, and omitting material information about the products that he actually sold to the customers.
Glenn King also omitted many of the features and risks of UITs from his sales pitches to firm customers. Additionally, Glenn King failed to disclose to firm customers the sales charges and costs associated with the UITs that they purchased or affirmatively misrepresented to them that he would not charge commission. Glenn King recommended bonds to his customers, but instead purchased UITs that possessed features that he failed to disclose. Glenn King received $38,000 in commission from these sales.
As a result of this conduct, Glenn King violated Section 10(b) of the Exchange Act and Rule 10b-5, FINRA Rule 2020 and NASD Rule 2120. The findings also stated that Glenn Robert King engaged in excessive and unsuitable short-term trading of long-term investments, such as UITs and closed-end funds (CEFs), in the accounts of firm customers. Glenn Robert King’s trading was quantitatively and qualitatively unsuitable. Glenn Robert King’s frenetic trading was inconsistent with their objectives and financial circumstances, and resulted in customer losses of approximately $163,000. Glenn Robert King’s misconduct was intentional and resulted in his monetary gain of approximately $210,000 in commissions. Glenn Robert King did not have reasonable grounds to believe that the number of CEF and UIT transactions that he executed in the customers’ accounts were not excessive. The findings also included that Glenn King exercised discretion in customer accounts by effecting trades in their accounts, including transactions involving UITs and CEFs, without obtaining prior written authorization from those customers. Glenn King also failed to obtain the firm’s written acceptance of the accounts as discretionary. In fact, Buckman, Buckman & Reid, Inc. prohibited the use of discretion by its representatives.
If you or someone you know lost money investing with Glenn King and/or Buckman, Buckman & Reid, Inc., you may be entitled to recover your investment losses through FINRA arbitration. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid. Your time to file a claim may be limited, so contact us today at (212) 658-0458 or firstname.lastname@example.org for a free and confidential case evaluation.