Did H.D. Vest Fail to Supervise Lewis J. Hunter?
| November 18, 2019
Our stockbroker misconduct lawyers have been hired by clients with potential claims against former stockbroker Lewis J. Hunter and brokerage company H.D. Vest. The Securities and Exchange Commission has alleged that Hunter took in around $300,000 from his H.D. Vest clients that was used for Hunter’s own personal expenses. It is believed Hunter used the trust he had built with his H.D. Vest clients to pitch this outside investment; it is also believed that he used fake documents and statements to keep up an appearance of legitimacy for the affected investors.
Unfortunately, cases of brokers selling away or offering investments that are not approved by the brokerage firm they work for are not uncommon. However, even if the brokerage firm was unaware of the pitch, victims of this kind of stockbroker misconduct and investment fraud may be able to hold the brokerage firm responsible for a failure to supervise.
What Is Failure to Supervise?
Each brokerage firm has a duty to supervise and monitor its employees.
The brokerage firm should have systems and policies in place that help to monitor:
- How accounts are opened
- How accounts are maintained
- How accounts perform
- The types of investments that are being offered by its brokers
- The background and complaint history of the brokers it employs
- New customer complaints
- Activity on accounts
- Communications, including mail, email, and social media
Sometimes, a claim could potentially be brought against H.D. Vest for failing to supervise the actions of it broker Lewis J. Hunter, who allegedly abused his position of trust.
Meyer Wilson Hired for Claims Related to Lewis J. Hunter
Hunter has been accused of using his position as a registered representative with HD Vest Investment Securities to misappropriate more than $300,000 from several of the firm’s long-time, elderly clients. He also allegedly made false and misleading representations about various investments and fabricated bank documents to cover up his alleged investment scheme.
Hunter’s reported actions violate the rules of the securities industry. His clients may have lost hundreds of thousands of dollars in investments due to HD Vest’s failure to properly supervise him. Investors who lost money as a result of Hunter’s actions may be able to recover their losses through a FINRA dispute resolution claim. Although the SEC has filed an action against Hunter, it is important to understand that in order to recover money lost, you MUST file your own action.
How Can I Get Help if I Sustained Losses Due to Stockbroker Misconduct?
The securities arbitration attorneys with Meyer Wilson have been hired by clients with claims relating to H.D. Vest and former stockbroker Lewis J. Hunter. If you sustained losses in this or a similar situation, we encourage you to connect with one of our stockbroker misconduct lawyers in a completely free legal consultation to talk about your options for loss recovery. Meyer Wilson has represented more than 800 clients across the nation in stockbroker mediation, arbitration, and litigation, and we would be happy to put our skills and resources to work for you.