Silver Law Group won an award against former FINRA-registered broker Curtis D. Milakovich for unsuitable recommendations, churning, and acting as an unregistered investment advisor.
FINRA Renders Award Through Arbitration
On December 22, 2017, a FINRA arbitration panel awarded Silver Law Group’s clients $164,000 in compensatory damages after the arbitration panel found that Milakovich was liable for unsuitable recommendations, breach of fiduciary duty, negligence, and churning.
Silver Law Group’s clients were ordinary investors working hard as school teachers. They trusted Milakovich and opened accounts with him initially at a brokerage firm. In 2013, Milakovich was allowed to voluntarily resign. Milakovich subsequently allowed his FINRA registration to lapse and opened accounts for the clients with a new brokerage firm. Milakovich allegedly never notified our clients that he did not renew his FINRA registration.
The clients’ accounts’ values dropped precipitously in value, all while Milakovich collected steep commissions and fees on the excessive trades he was executing in the clients’ accounts without their consent.
In 2015, FINRA barred him from the industry. Then, in June 2017, the Florida Office of Financial Regulation barred Milakovich as well and fined him $70,000. In addition to Milakovich’s regulatory bars, two (2) complaints have collectively settled against him for almost $100,000.
Unregistered Investment Advisor, Unauthorized Trading and Churning
Unauthorized trading and churning are serious matters, and they often come in the same package. Under FINRA rules, brokers must get the express consent of the investors prior to executing any trades unless the investor has given the broker discretionary authority. If a broker does not have discretionary authority and has not gotten the investor’s approval, unauthorized trading has occurred.
Churning occurs when a broker executes transactions for the sole purpose of generating fees or commissions. Churning can occur, in some cases, when there have been as few as two or three trades. In many cases, the churning is far more egregious. In the case with Milakovich, Milakovich churned our clients’ accounts so much that our clients’ investments would have needed to increase almost 20% in value just to break even.
Call Our Firm if You’ve Lost Money Due to Churning and/or Unauthorized Trading
Unauthorized trading and churning are serious forms of broker misconduct. A broker’s employing firm is responsible for overseeing the broker to prevent such misconduct. Failure to supervise is a claim made against a brokerage firm in these situations.
FINRA arbitration is a fast, efficient way to recover your lost investment funds. We work on a contingency fee basis, meaning you pay us nothing unless we win and recover money for you.
If you have invested with Curtis D. Milakovich and have lost money doing so, you may be able to recover some or all of your losses. Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct through FINRA arbitration.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at firstname.lastname@example.org or toll free at (800) 975-4345.