The SEC obtained a partial summary judgment against Westport Capital Markets, LLC and Christopher E. McClure after allegations that they breached fiduciary duties and defrauded clients.
The Sonn Law Group is investigating claims that Christopher McClure breached fiduciary duties and defrauded his clients. Under FINRA Rules, brokerage firms are liable for their brokers’ misconduct or negligence and investors may be able to their investment through FINRA arbitration. Contact Sonn Law Group today or call us at 866–827–3202 for a free consultation.
The SEC originally filed a complaint against Westport Capital Markets, LLC (Westport) and its principal Christopher McClure (CRD#:2289844) in December 2017 alleging violations of fiduciary duties. Specifically, McClure made repeated purchases of securities in the investors’ accounts, causing the investors to pay mark-ups and fees that the investors were unaware of.
The SEC alleged that McClure and Westport charged investors those undisclosed fees and mark-ups in addition to the advisory fees the investors were already charged for McClure’s services. Through their conduct, “Westport and McClure breached the fiduciary duty that they owed to their investment advisory clients, by defrauding those clients, failing to make investment decisions in the best interest of those clients, and failing to disclose their conflicts of interest.”
On September 30, 2019, a partial summary judgment was granted in the SEC’s favor. The court’s order held that McClure and Westport acted at least negligently when they failed to disclose their conflicts of interest, and that the SEC is entitled to summary judgment on some of its claims.
According to McClure’s BrokerCheck report, he has been the subject of two customer disputes. In 2018 he was accused of negligence, breach of contract, breach of fiduciary duty, omissions and misrepresentations by a former client who was dissatisfied with his investment strategy. Without admitting or denying the findings, the matter was settled for $137,000.
In 2003, while employed by Prudential Securities, McClure was the subject of another customer dispute in which the client alleged he engaged in unauthorized and unsuitable investment transactions. The dispute was settled for $72,500, $22,500 of which McClure had to pay personally.
Jeffrey R. Sonn is an experienced investor losses attorney. If you suffered losses because a financial professional committed acts in violation of FINRA Rules, Mr. Sonn will protect your rights and interests. Please do not hesitate to contact the Sonn Law Group today for a free review of your claim.