The law firm of Oakes & Fosher is presently investigating the alleged misconduct of securities broker David McMillen. According to his publicly available FINRA BrokerCheck report, David McMillen has been the subject of multiple customer disputes.

David McMillen is a Colorado based securities broker. He has worked in the securities industry for thirty-five years. During his career, he has been registered with eight different securities firms.

His Registrations

  • First Investors Corporation (1983-1984)
  • Interfinancial Securities (1984-1986)
  • Equico Securities (1985-1992)
  • The Equitable Life Assurance Society of the United States (1985-1992)
  • Lincoln Financial Advisors Corporation (1992-1995)
  • Sunamerica Securities (1995-2000)
  • Multi-Financial Securities Corporation (2000-2003)
  • Crown Capital Securities (2003-Present)

The Allegations

  • In February 2017, a customer alleged that the investments they purchased on David McMillen’s recommendation cannot be liquidated and their value cannot be ascertained. As a result, the customer is unable to ascertain their financial position. This case was settled for $1.5 million in damages.
  • In March 2018, a customer alleged that David McMillen recommended unsuitable investments that were highly illiquid. This case was settled for $250,000 in damages.

What Does This Mean?

The reason that these securities David McMillen recommended were so unsuitable and illiquid is because of their private nature. Privately traded securities are very poorly regulated due to the fact that they are not traded on any public securities exchanges. Because of this, there is a great potential for oversight when dealing in these products. Many brokers use this to their advantage as it allows them to misrepresent privately traded securities as safe and low-risk investments. The truth is that these types of investments are speculative and illiquid securities that are unsuitable for most investors. Despite this, many brokers like David McMillen push them onto unsuspecting investors because of the incredibly high commissions they receive when doing so. These commissions can be so high that it makes it almost impossible for investors to see returns under anything other than booming market conditions.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with David McMillen, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.