In February 2018, a former client of Legend Securities, Inc. won an award in a FINRA arbitration for compensatory damages for $161,970 plus 4% interest per year and $20,000 in punitive damages, for a total award of $181,970. The investors were clients of financial advisors Jonathan Miller (CRD# 5772258) and John Smith (CRD# 5764683).
The causes of action included falsifications and misrepresentation, dishonest and fraudulent conduct, churning, breach of fiduciary duty, gross negligence, induced purchases, and manipulations. The causes of action relate to unspecified securities. The FINRA arbitration hearing was conducted in New York, New York.
The FINRA panel found Legend Securities, Inc., Miller, and Smith jointly and severally liable for damages.
Miller has been registered with Joseph Stone Capital L.L.C. in New York, New York since July 2016. Previously, he was registered with Legend Securities, Inc. in New York, New York from 2014 to 2016. Miller has only been subject to the one customer complaint in the case above.
Smith was registered with Legend Securities, Inc. in New York, New York from 2014 to December 2016. He is not currently registered with any brokerage firm. Smith has only been subject to the one customer complaint in the case above.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Legend Securities, Inc. may be liable for investment or other losses suffered by Miller and Smith’s customers.
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