Last Updated: November 2024 (Rochester, NY)
National securities fraud lawyers at Patil Law P.C. are investigating current Morgan Stanley broker Kenper Miller (CRD #840784) regarding allegations of implementing an unsuitable options trading strategy in managed accounts.
The investigation stems from a recently filed FINRA arbitration claim raising concerns about Mr. Miller’s options trading strategies between 2018 and 2020.
Critical Insights About Rochester Financial Advisor Kenper Miller
- Advisor Name: Kenper W. Miller
- CRD: 840784
- Location: Rochester, NY
- Current Employer: Morgan Stanley
- Classification: Registered Representative & Investment Adviser Representative
- Primary Location: 300 Linden Oaks, Suite 200, Rochester, NY 14625
- Can Kenper Miller be sued in FINRA arbitration: Yes
- Customer Disputes: One pending FINRA arbitration
- Current Registrations: Licensed in 28 states
- Years of Experience: Since 1977
- Previous Employers: Citigroup Global Markets (1993-2009), Lehman Brothers (1991-1993), Merrill Lynch (1981-1991)
- Professional Qualifications: Series 7, 31, 5, 63, 65 licenses
- Exchange Registrations: FINRA, NYSE, Nasdaq, NYSE American
- Outside Business Activities: Board Member of Lifetime Assistance Foundation
Details of Current Investigation
A FINRA arbitration claim (Case #24-02371) filed in November 2024 alleges that Mr. Miller implemented an unsuitable options trading strategy in the claimant’s managed account between 2018 and 2020. The complaint focuses on:
- Options strategy suitability concerns
- Management of discretionary accounts
- Implementation of complex trading strategies
- Risk management practices
Analysis of Alleged Misconduct
The allegations center on several key concerns:
- Appropriateness of options strategies for client objectives
- Risk level of trading activities
- Portfolio management decisions
- Account supervision
- Disclosure of trading risks
- Due diligence practices
Regulatory Framework and Investor Protection
SEC Regulation Best Interest
Reg BI requires Mr. Miller to:
- Ensure trading strategies align with client objectives
- Understand and disclose options risks
- Consider client sophistication level
- Evaluate strategy appropriateness
- Monitor account activity
- Document suitability determinations
FINRA Rules and Their Significance
FINRA Rule 2360 (Options) mandates:
- Specific suitability requirements for options
- Due diligence on client experience
- Risk disclosure obligations
- Position and exercise limits
- Supervision requirements
FINRA Rule 2111 requires:
- Strategy-specific suitability analysis
- Client-specific considerations
- Documentation of recommendations
- Reasonable-basis suitability
Professional Background
Mr. Miller has extensive industry experience since 1977, including:
- Over 45 years in securities industry
- Multiple major firm affiliations
- Significant options trading experience
- Interest rate options qualification
- Futures managed funds experience
Red Flags for Investors
- Complex options trading strategies
- Recent arbitration regarding managed accounts
- Multiple exchange registrations
- Long tenure potentially leading to overconfidence
- Sophisticated trading instruments
- Discretionary account management
- Historical firm transitions during market crises
Implications for Current and Former Clients
Current and former clients should:
- Review options trading activity
- Evaluate account statements
- Assess risk tolerance alignment
- Document trading strategy discussions
- Verify authorization for trades
- Consider independent portfolio review
- Understand their rights regarding unsuitable trading
- Calculate trading losses
- Review account objectives
Patil Law P.C. Will Help You Recover Your Investment Losses
If you have suffered investment losses in an account handled by Mr. Miller or have concerns about options trading strategies in your portfolio, please contact Attorney Patil online or call (800) 950-6553 for a free initial consultation. Our securities fraud attorneys work on a contingency fee basis, meaning we only get paid if we help you recover money.
