Carnahan allegedly converted almost $170,000 in misappropriated customer funds
After 16 years and five disclosure events in the securities industry, Bryan Andrew Carnahan was barred permanently by FINRA on May 1 following allegations that he converted $169,500 in funds from a customer at his firm, The Huntington Investment Company, between September 2013 and March 2015. Prior to being employed by Huntington, Carnahan worked for John Hancock Distributors, Inc., in 1998.
According to FINRA reports, Carnahan transferred the customer’s funds and asked her to write cashier’s checks that were supposedly to be used for an investment. He then allegedly caused the checks to be re-issued fraudulently in the amount of $169,500. It is purported that he then made those checks payable to his own account and to the accounts of other customers who lost money in investments. FINRA reports that at least 13 additional customers were involved in the alleged scheme.
Carnahan was discharged from Huntington in March as a result of these alleged misappropriated funds, but while he was with the firm, he was involved in three customer disputes, one that was dismissed and another two that were settled.
In 2002, a customer accused Carnahan of misleading her in an investment in which she lost money. She alleged damages of $14,850, and Huntington settled with her for more than $18,000, according to FINRA. In the firm’s statement, it said Carnahan would pay more than $13,000 back to the firm.
In 2012, another customer alleged that Carnahan misrepresented certain investments and failed to disclose important information about them. She also claimed that she was scammed and that more than $800 was unaccounted for in her account. She claimed damages of more than $8,000, and the firm settled with her for $2,925.
It is unlawful for anyone to misrepresent or omit information during the sale of a security. There must be a reasonable basis for the claims made about a security and the investor must be given all material information known to the broker regarding the potential investment — including the fees involved and the degree of risk. Assurances or promises made without a reasonable basis as well as misleading or omitted information are generally considered common law fraud and may be cause for legal action.
Thankfully, investors can recover losses caused by the misconduct of brokers like Bryan Carnahan through securities arbitration. To pursue your rights as an investor, schedule a free consultation with Silver Law Group. Our experienced securities attorneys work with investors nationwide on a contingent fee basis, which means no legal fees are paid unless we win the case.