According to a recent FINRA announcement, Allen Michael Green (CRD #824126, South Lyon, Michigan) recently was barred from association with any FINRA member in any capacity. The sanction was based on findings that Green recommended unsuitable securities to a disabled customer with limited financial resources. The findings stated that Green had an unusual worldview as it related to investment strategies, which resulted in his recommending unsuitable investments for the customer. Green believed that the world economy was about to collapse and that 16 Disciplinary and Other FINRA Actions November 2015 certain categories of assets would increase in value in the resulting disorder. These beliefs led Green to recommend that the customer purchase securities involving investments in precious metals, commodities, natural resources and energy. Green did not provide the customer with other investment suggestions. To pursue this investment strategy, Green recommended that the customer liquidate her existing annuity. She followed Green’s advice and sold the annuity, incurring a surrender charge of $59,583. Green’s recommendations for aggressive growth caused the customer to lose at least $193,165, not counting the $59,583 annuity surrender charge. The findings also stated that Green did not have a reasonable basis to recommend nontraditional ETFs to his retail customers. Green failed to understand how non-traditional ETFs operated and the inherent risks they posed to retail customers. As a result, Green failed to learn important facts relating to the suitability of the products as investments for his customers. During FINRA’s investigation, Green exhibited a lack of knowledge about how non-traditional ETFs worked. Green also recommended that his customers hold the investment for longer than a day, contrary to the disclosures contained in the funds’ prospectuses. Green’s customers typically held the non-traditional ETFs for more than six months, and sometimes for longer than one year. As a result, Green’s customers lost money.
For the full findings, see FINRA Case #2011028071901.
According to his FINRA Broker Check, Green was registered with Royal Securities Company from 11/2009 – 04/2013.
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