The Georgia based previously registered broker John Timberlake (also known as John Hillman Timberlake) has been the subject of customer dispute disclosures on the allegation of the broker recommending unsuitable investments, among others, according to an investigation by attorney Alan Rosca.
Unsuitable investment attorney Alan Rosca of the Rosca Scarlato LLC law firm is investigating conduct related to the customer dispute disclosures involving John Timberlake as well as the circumstances leading to his FINRA sanction. Concerned investors are encouraged to discuss their option with an experienced attorney. Investors may reach out to attorney Rosca by calling 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this page.
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John Timberlake Has Been Subject to Customer Dispute Disclosures
The publicly available information reviewed by the unsuitable investment attorney shows that as of the date of this article former broker John Timberlake has several customer dispute disclosures according to his FINRA brokercheck page.
In December 2020 a customer filed a FINRA dispute alleging unauthorized trading while Timberlake was registered with Carter, Terry & Company. The customer further alleged poor performance of his investments. No amount of damages was specified, but the damages are believed to be in excess of $5,000.
In October, 2019, another client alleged unsuitable investment recommendations. The unsuitable investment recommendation as reported, was in respect of the unsuitable speculative investment strategy in various thinly traded securities and the guarantee of performance. The client sought to recover $88,700 in damages from the dispute but the dispute was settled for $50,000.
Generally speaking, unsuitable investment recommendations could be investment recommendations that do not meet the specific investment needs of the investors or investment recommendations that are generally not safe for any investor. This unsuitability could arise from the investment strategy employed or the inappropriate composition of the portfolio among others.
In a similar dispute filed in February 2019, the client through their attorney alleged that the firm and the previously registered investment adviser failed to present suitable investment recommendations. The client further alleged that the former broker did not implement an appropriate investment strategy and he improperly managed their account. As a result of this, the client sought to recover $102,000 in damages from the former broker and the firm, but the dispute was settled for $55,000.
Generally, improper management of accounts could arise from various acts including churning and excessive trading, unauthorized trades, and improper keeping of account records among others.
John Hillman Timberlake was also subject of a customer dispute filed in January, 2016 according to the FINRA reports. In this customer dispute, the client alleged the similar issue of the unsuitability of investment recommendations. The client further stated that they were upset over margin calls caused by increase in requirement of Empire Resorts (NYNY) after 1-5 reverse split as stated in the brokercheck report. The client sought to recover $105,831.82 in damages at the initiation of the customer dispute and the dispute was settled for the same amount.
Generally, a margin call could be said to occur when the value of the margin traded account owned by the investor falls below the required amount. This act of the value falling below the required threshold could require the investor to add funds into the account to take it back to the accepted level.
Timberlake Was With the Industry for 26 Years
Previously registered broker John Timberlake joined his first broker dealer in June 1992 when he registered with JP Morgan Securities in Atlanta, Georgia. He was with JP Morgan until January 2012, when he joined Suntrust Investment Services, also on Atlanta, Georgia.
In July 2016 he left Suntrust to join Carter Terry & Company. Former broker John Timberlake was with the firm until he was discharged on the allegations that the previously registered broker and investment adviser violated firm policy regarding the use of text messages with clients. This discharge from employment was reported in May 2020 according to the FINRA brokercheck reports.
FINRA Sanctioned John Timberlake
According to a Letter of Acceptance, Waiver, and Consent (AWC), former broker John H. Timberlake was suspended and fined for allegedly using his cellular phone to exchange business and securities related text messages with two of his customers, thus violating FINRA Rules 4511 and 2010. Furthermore, FINRA alleged that Timberlake sent texts to a customer “that included promissory, exaggerated, unwarranted, and misleading
statements”.
Without admitting or denying the allegations, on November 17, 2020, former broker John Hillman Timberlake singed the letter consenting to FINRA’s four month suspension and $10,000 fine.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Securities Lawyer Investigating
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating circumstances leading to the customer dispute disclosures involving former broker John Timberlake, and well as circumstances leading to FINRA sanction.
The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related to broker John Hillman Timberlake’s alleged misconduct, may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.