J.J.B. Hilliard, W.L. Lyons, LLC financial advisor Michael Barnett (CRD# 5792242) has numerous pending customer complaints regarding losses sustained from investments in Breitburn Energy Partners Limited Partnership and other acts of securities fraud. Barnett has been registered with J.J.B. Hilliard, W.L. Lyons, LLC in Marion, Illinois since 2012.
Breitburn Energy Partners is an independent oil and gas master limited partnership focused on the development and production of oil and gas properties throughout the United States. The decline in commodity prices beginning in 2014 placed stress on the industry as a whole, and the company’s debt burden became unsustainable. Breitburn has since filed for Chapter 11 of the U.S. Bankruptcy Code to restructure its balance sheet in May 2016 and eliminated $5.8 billion in debt.
Barnett has been the subject of six customer complaints between 2016 and 2018, according to his CRD report:
- June 2018. “Claimant alleges breach of contract, breach of fiduciary duty, violation of the Kentucky Consumer Protection Act, violation of Kentucky’s blue sky laws, and violation of the Illinois Consumer Fraud Act. Specifically, the Claimant alleges over-concentration and losses in Breitburn Energy (BBEP) and that BBEP was unsuitable.” The customer is seeking $42,791.95 and the case is currently pending.
- June 2018. “Claimant, a former client, alleges breach of contract, breach of fiduciary duty, violation of Kentucky Consumer Protection Act, violation of Kentucky Blue Sky Law, and violation of Illinois Consumer Fraud Act. Specifically, the Claimant alleges over-concentration and losses in Breitburn Energy (BBEP) and that BBEP was unsuitable.” The customer is seeking $30,737.61 and the case is currently pending.
- May 2018. “Claimants allege breach of fiduciary duty, violation of Illinois’ Securities Act (Section 815 ILCS 5/12 et al.), negligence/negligent misrepresentation/omission, breach of contract, restitution, common law fraud, and negligent supervision.” The customer is seeking $60,000 and the case is currently pending.
- November 2017. “Claimants allege misrepresentation, unsuitable investments, and unauthorized trading in a single security beginning in 2014 through 2015.” The customer is seeking $1.5 million and the case is currently pending.
- January 2017. “Client alleges unauthorized trading of an unsuitable security.” The case is currently pending.
- June 2016. “Michael B. Barnett was a subject of the customers’ complaint against his member firm that asserted the following causes of action: violation of Illinois’ Securities Act, 815 ILCS 5/12 et al.; breach of fiduciary duty; negligence/negligent misrepresentation and omission; breach of contract; restitution; common law fraud; and negligent supervision. The causes of action related to Claimants’ allegations that Respondent and Respondent’s registered representative sold all of the Claimants’ blue chip stocks and invested all of the funds in their joint account and an IRA in a highly speculative oil and gas company. Claimants asserted that this lack of diversification exposed them to massive risk which was contrary to their conservative investment objectives and low-risk tolerance level.” The customer sought $441,338.73 in damages. In September 2017, the customer was awarded $450,000 in compensatory damages, $100,000 in punitive damages, $18,399.00 in costs, and $300 in filing fees related to claims that Barnett sold the customer’s blue chip stocks and invested all of the funds in their joint account and an IRA in a highly speculative oil and gas company, Breitburn Energy Partners LP. Claimants asserted that this lack of diversification exposed them to massive risk which was contrary to their conservative investment objectives and low-risk tolerance level.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, J.J.B. Hilliard, W.L. Lyons, LLC may be liable for investment or other losses suffered by Barnett’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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