What Did Your Brokerage Firm or Investment Adviser Do Wrong With GWG
Published On: November 18, 2015

Stoltmann Law Offices is investigating David Michael Miller, a former registered representative with The Huntington Investment Company. According to a Financial Industry Regulatory Authority (FINRA) disciplinary proceeding, Miller recommended that his clients purchase 141 unit investment trusts (UIT) which totaled approximately $5.4 million in 129 customer accounts. The UITs invested were comprised of closed-end funds (CEFs) invested in municipal securities. Many of them used leverage to purchase municipal securities. Miller allegedly failed to conduct reasonable due diligence prior to making these recommendations. A registered representative is required to take into account the investment’s composition, basis for distribution payments, volatility, liquidity, use of leverage and valuation at termination. He is also required to take into account the customer’s age, net worth, portfolio and investment objective before recommending a security. If he does not, his firm can be liable for investment losses because they had a duty to reasonably supervise him.

UITs are investment companies that offer a fixed, unmanaged portfolio, generally of stocks and bonds, as redeemable “units” to investors for a specific period of time. They are designed to provide capital appreciation and/or dividend income. In Miller’s case, he misrepresented to his customers that the UITs could lose value only if bond rates rose or municipalities defaulted, their principal would be returned at trust termination so long as bond rates did not rise and municipalities did not default and any losses from net asset value fluctuation would be less than the interest payments the customers would receive over the life of the trust. He also allegedly told customers that the investments were safe, when they were not.

David Michael Miller was registered with New England Securities in Columbus, Ohio from February 2008 until July 2008 and The Huntington Investment Company in Columbus from July 2008 until August 2013. He has 10 customer disputes against him. He is not licensed within the industry. Please call our securities law offices if you have complaints about David Michael Miller or his former firm, The Huntington Investment Company. The call is free.


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