Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) on June 2, 2016 indicate that New York-based CL King & Associates broker Gregg Miller has been named in a FINRA complaint. The securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Miller (CRD# 4163500).
Gregg Miller has spent 15 years in the securities industry and has been registered with CL King & Associates in Albany, New York since 2001. He has no previous registrations. He is a registered broker in New York.
According to his BrokerCheck report, Gregg Miller is the subject of a pending FINRA complaint.
In April 2016, Gregg Miller was named respondent in a FINRA complaint alleging that his member firm, CL King & Associates, “assisted its customer and the customer’s managing member in a scheme to profit from the deaths of vulnerable elderly and terminally ill patients.” According to FINRA’s complaint:
“…The firm’s customer identified and recruited terminally ill individuals by offering to pay them between $10,000 and $15,000 in exchange for their agreement to open a joint brokerage account with the managing member. The firm opened accounts for the customer in the name of the managing member and that of one of several terminally ill individuals. Although these accounts ostensibly were opened by the managing member and the terminally ill individuals as joint accounts, the customer required the terminally ill individuals to sign side agreements relinquishing their rights over, and responsibilities for, the assets in the accounts. Once opened, the customer used the joint accounts at the firm to purchase discounted corporate bonds, notes, and market-linked CDs containing a survivor’s option or “death put” (collectively, the “death put investments”), which allowed the customer and its managing member to redeem the investments for the full principal amount prior to maturity upon the death of a beneficial owner. When the terminally ill individual died, the firm redeemed the death put investments on behalf of the customer. In total, the firm redeemed approximately $60 million in death put investments. The firm made at least $1.2 million in margin interest and trading profits from the customer’s death put business.”
FINRA alleges that CL King & Associates made material misrepresentations and omissions with respect to the death put business, and failed to establish and maintain adequate supervisory procedures to ensure compliance with relevant securities laws. According to FINRA, the financiers’ penny stock liquidations “generated proceeds of more than $14.39 million and $4.87 million, respectively, while the firm generated over $620,000 in commissions from these sales,” while Mr. Miller failed to reasonably detect red flags of potentially suspicious activities. FINRA’s complaint remains pending.
If you have lost money investing with Gregg Miller or CL King & Associates, you may be eligible to recover your losses. Call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. All cases are taken on contingency: we only receive payment if and when you recover money. You might have a limited time to file your claim, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.