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

Justin Parker was a California based securities broker. He worked in the securities industry for sixteen years. During his career, he was registered with two different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

  • M.L. Stern & Co. (2001-2008)
  • Hilltop Securities (2008-2017)

The Allegations

  • In August 2017, an attorney, on behalf of a customer, alleged that Justin Parker recommended unsuitable investments, churned their account, financially exploited the customer, engaged in an unsuitable use of margin, engaged in elder abuse, made material misrepresentations, breached his fiduciary duty, and excessively traded their account in connection with municipal bond and UIT trades. This case was settled for $400,000 in damages.
  • Also in August 2017, a customer alleged that Parker misrepresented two UIT investments by failing to provide full disclosure regarding the fees and risks of the investments.
  • In July 2018, a customer alleged that Justin Parker recommended unsuitable investments, made material misrepresentations, and excessively traded their account. This case was settled for $100,000 in damages.

What Does This Mean?

UITs, or unit investment trusts, are products often linked to a securities broker’s excessive trading. UITs are securities that encompass a wide variety of equities sold as individual units. They are similar to mutual funds in this regard. However, mutual funds can be bought and sold quickly while still benefiting the customer. UITs must be specifically held onto for longer periods of time in order for them to mature. Not allowing them to do so can significantly limit an investor’s earning potential. These products are also accompanied by significant fees and commissions paid to the selling brokers. Short-term switching for these products can provide brokers with large commissions, but causes the investors to incur substantial fees that very easily rack up. It also causes investors to forfeit any returns they might have seen had the investment been allowed to mature. When an investor engages in this type of excessive trading to increase their own commissions, it is referred to as account churning.

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 Justin Parker, 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.