Marc Hallick Involved in $6.5 Million Dispute
Marc Hallick (CRD# 4652410), a broker registered with Raymond James & Associates, made unsuitable sales on margin, according to an investor dispute. MDF Law is investigating the The Villages, Florida-based financial professional for similar conduct. Contact our firm for a free consultation if you have concerns about your own investments.
More information about the allegations involving Mr. Hallick can be found in this post. The information below is sourced from his BrokerCheck profile, a Financial Industry Regulatory Authority (FINRA) record accessed on January 3, 2023.
Pending Dispute Alleges Unsuitable Margin Short-Selling
On November 2, 2023, an investor filed a dispute involving Mr. Hallick. The investor alleges that he implemented an unsuitable investment strategy. It alleges more specifically that the strategy involved “short selling [of] concentrated positions on margin.” He also allegedly failed to disclose the strategy’s risks, per the claim. The dispute, which remains pending, seeks $6.5 million in damages.
What Is Margin Trading?
“Margin trading” occurs when a broker-dealer firm lends funds to an investor to make investments, using the securities as collateral. Short-selling occurs when an investor borrows a stock or other security whose value they expect to decrease, then sells it on the market. If and when the value falls, the investor buys it at the new price. Then, they give the security back to whomever they borrowed it from, keeping the difference (minus any commissions or interest) as profit.
Short-selling increases an investor’s purchasing power, potentially amplifies their returns, and allows them to profit from the decline in a stock’s share price. However, it can also result in enhanced losses. Investors who trade on margin may even lose significantly more than their principal. These risks may be magnified in cases where the investor’s portfolio is concentrated in certain investments or sectors.
Under FINRA Rule 2111 and the SEC’s Regulation Best Interest, brokers must tailor investment strategies to an investor’s background and objectives. They are also forbidden from omitting material information regarding the strategies they recommend—like potential risks—or from misrepresenting such information.
FINRA: Marc Hallick Based in The Villages, Florida
Marc Hallick launched his career as a broker in 2003, registering with Morgan Stanley DW in Purchase, New York. In 2005 he left the firm for Wells Fargo Clearing Services in The Villages, Florida, where he remained until 2019. That year, he registered with Raymond James & Associates’ office in The Villages, where he works today. With 20 years of experience as a broker under his belt, he has completed one state securities law exam and three general industry/products exams.
Chat With an Investment Fraud Attorney Today
Investors who lost funds on investments recommended by Marc Hallick may be able to pursue a recovery through the FINRA arbitration process. Call MDF Law for a free consultation about your options, especially if any of the following circumstances apply:
- Your broker recommended investments or strategies that were too risky for your background;
- Your broker did not fully explain the risks of the strategy they recommended, including the risks of margin trading and short-selling;
- Your broker failed to disclose that margin trading could result in the loss of your entire principal;
- Your investments included a significant amount of your net worth.
The seasoned broker fraud attorneys at MDF Law have recovered tens of millions of their clients’ losses. Call 800-767-8040 today to speak with an attorney for free.