FINRA recently began an investigation into allegations that Brunner was engaging in excessive trading, and “use of discretion without written authorization in customer accounts” while he was a registered broker. He was requested to give on-the-record testimony in regard to the investigation, and declined to do so. Brunner was indefinitely barred from affiliation with any FINRA broker, effective 04/06/2018.
The investigation stems from a customer complaint to Investment Planners on 05/10/2018 that alleged “suitability, discretion, client unaware of amount of fees paid, client did not receive statements and did not sign active trading letters (client did not allege RR signed letters). Mar 2015 – Feb 2017.” The customer requested damages in the amount of $1,000,000. The firm requested phone records and a written response from Brunner, and he resigned on 05/12/2018. The dispute is still listed as “pending.”
Another customer complaint, dated 06/12/2017, alleges “negligence, breach of fiduciary duty and contract, churning, unauthorized trading and suitability of a corporate account. 3/2105 – 3/2017.” Damages of $1,000,000 were requested, and the case was settled for $200,000.
A previous customer dispute, filed on 09/22/2004, was denied. Although the client alleged unsuitability, breach of fiduciary duty and trading against objectives and asked for damages of $250,000, Brunner denied the claims.
However, another dispute, filed on 07/23/2002, alleged unauthorized trading, churning, and losses stemming from unsuitable investments. The client was awarded $99,500.
Brunner was also the subject of a previous disciplinary action, filed on 11/13/1998 by the National Association of Securities Dealers, Inc. The allegations were that he made “material misrepresentations” to a customer, omitted disclosing material facts in his recommendations, failed to execute a sell order and made fraudulent price predictions. He was fined $20,000, suspended for 30 days, required to make restitution to the customer in the amount of $24,781.25, and re-qualify as a general securities representative. The balance was paid in full as of 05/04/2000.
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. Scott Silver, managing partner, is a former Wall Street defense attorney who now only represents investors in claims against brokerage firms. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.