Articles Tagged with Coleman Devlin

Miller Law Group – The Law Offices of Daniel J. Miller, LLC successfully litigated against Stifel, Nicolaus & Company, Incorporated and current financial advisor Kenneth Blumberg  (CRD# 1585520) pertaining to a multitude of allegations including taking discretion in customer accounts without authority, over-concentration in sectors and individual securities, breach of fiduciary duty, unsuitable investments and other securities violations.  Blumberg was registered with Stifel during the time of the events, located in the downtown Baltimore office of Stifel, Nicolaus & Company, Incorporated.

A FINRA arbitration panel has ordered Stifel Nicolaus & Company, Incorporated to pay more than $1.5 million to four customers who claimed that their Financial Advisor, Kenneth Blumberg  (CRD# 1585520) unsuitably concentrated their portfolios in biotechnology and healthcare stocks at levels exceeding 80%.  It was further alleged that while the customers’ portfolios were profitable, Mr. Blumberg failed to protect gains in the account, which was a violation of his duties as a fiduciary, after which time the value in the accounts deteriorated by approximately $1 Million. The case against Stifel asserted that it failed to properly supervise Blumberg. In the Arbitration, the customers recovered 100% of their losses plus approximately $500,000 in consequential damages reflecting what the accounts would have gained from the time they withdrew from Stifel as customers through the date of the Arbitration had the gains been protected and suitably reinvested.

Bull BearMiller Trial Law is investigating and litigating against Stifel, Nicolaus & Company, Incorporated and former financial advisor Coleman Devlin (CRD# 2317635) and current financial advisor Kenneth Blumberg  (CRD# 1585520) pertaining to a multitude of allegations including taking discretion in customer accounts without authority, over-concentration in sectors and individual securities, breach of fiduciary duty, unsuitable investments in options and unlisted securities and other securities violations. Both Devlin and Blumberg were registered with Stifel during the time of the events, located in the downtown Baltimore office of Stifel, Nicolaus & Company, Incorporated, before being terminated for, among other things, the issues complained of in this arbitration.  Mr. Devlin was previously sanctioned and dismissed from Morgan Stanley for similar violations.

In 2003 Devlin was sanctioned with suspension and disgorgement by the NASD and in 2017, Devlin was suspended from FINRA and received a financial penalty.  Mr. Devlin also entered into an agreement with the New Jersey regulators and in order to maintain his licensing, was subjected to heightened supervision which the current allegations allege did not address the concerns.

The current arbitration was filed in December 2017 alleging, among other things, breach of contract, selling away, professional negligence, breach of fiduciary duty, violation of Maryland Securities Act, violation of the Securities Exchange Act of 1934 and SEC Rule 10b-5, and negligent supervision.  These investors are seeking over $20,000,000 in damages for investment losses.

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