GREGG ALAN MILLER is currently employed as a Broker and/or Investment Adviser at C. L. KING & ASSOCIATES, INC. located at NINE ELK STREET, ALBANY, NY, 12207.
GREGG ALAN MILLER has worked at C. L. KING & ASSOCIATES, INC. since February 09, 2001
Disclosure History
GREGG ALAN MILLER has 1 Disclosure Event(s).
Date: April 18, 2016 Category: Regulatory Initiated By: FINRA Allegations: Miller was named a respondent in a FINRA complaint alleging that his member firm, acting through him, its AMLCO, failed to establish and implement a reasonably designed AML program to detect, investigate and report, where appropriate, potentially suspicious activity related to the sale of low-priced penny stocks by the firm's customers, including two toxic-debt financiers, who collectively liquidated more than 11 billion shares of numerous penny stocks through the firm. The financiers' penny stock liquidations generated proceeds of more than $14.39 million and $4.87 million, respectively, while the firm generated over $620,000 in commissions from these sales. Miller ignored and failed to reasonably detect and investigate red flags of potentially suspicious activities and failed to respond appropriately and consider whether or not to report the activity as suspicious to FinCEN. The complaint alleges that the firm, acting through Miller, failed to conduct adequate due diligence and respond to red flags regarding the account it opened for a foreign financial institution. Resolution: Pending Appeal Regulator Statement: Extended Hearing Panel Decision rendered September 6, 2017 wherein Miller fined a total of $20,000, suspended from association with any FINRA member in any principal capacity for six months, ordered to requalify as a principal before associating with a firm as a principal, and ordered to pay costs, jointly and severally, of $20,175.20. The sanctions were based on findings that Miller, as his member firm's AMLCO, and the firm failed to establish and implement an AML program reasonably designed to cause the detection and reporting of suspicious transactions under the Bank Secrecy Act related to the liquidation of billions of shares of low-priced penny stocks by two firm customers, which earned the customers proceeds exceeding $19 million. The findings stated that during the period in which the two customers liquidated penny stocks, the firm had in place AML procedures that directed Miller, as the AMLCO, to review at least annually the firm's AML policies and procedures, review new AML regulations, and engage in ongoing monitoring of activity at the firm that could involve AML-related risks. Miller was responsible for developing and updating the firm's AML program, monitoring (or designating others to assist with monitoring) the activity of "customers to reasonably detect and prevent money laundering activities." The firm's procedures also provided guidance on what sorts of activity Miller was also obligated to report. In January 2010, FINRA updated its template for a small firm's AML program. The firm and Miller did not revise the firm's AML procedures to include the updated small firm AML template until June 2013, more than three years after FINRA revised the template. The findings also stated that Miller and the firm failed to conduct adequate due diligence and respond to red flags indicative of potential money laundering activity by a firm customer, a foreign financial institution. The firm failed to accurately understand the nature of the customer's business and they failed to conduct their own separate due diligence into the customer. Miller never spoke directly with anyone from the customer. On September 22, 2017 Miller appealed the Decision to the National Adjudicatory Council (NAC). The sanctions are not in effect. Broker Comment: ON SEPTEMBER 6, 2017, AN INITIAL DECISION WAS ISSUED BY THE EXTENDED HEARING PANEL FINDING THAT MR. MILLER AS THE FIRM'S ANTI-MONEY LAUNDERING OFFICER FAILED TO ESTABLISH AND IMPLEMENT AN ANTI-MONEY LAUNDERING PROGRAM REASONABLY DESIGNED TO DETECT AND REPORT SUSPICIOUS TRANSACTIONS RELATED TO LOW PRICED SECURITIES. THE PANEL ASSESSED A $20,000 FINE AND A SIX MONTH PRINCIPAL SUSPENSION AGAINST MR. MILLER. ON SEPTEMBER 22, 2017, MR. MILLER FILED AN APPEAL WITH THE NATIONAL ADJUDICATORY COUNSEL. THE GROUNDS FOR THE APPEAL, AMONG OTHERS, ARE THAT THE RECORD BEFORE THE EXTENDED HEARING PANEL DID NOT SUPPORT ITS FINDING THAT MILLER FAILED TO DEVELOP AND IMPLEMENT AN AML PROGRAM REASONABLY DESIGNED TO DETECT, INVESTIGATE, AND REPORT POTENTIALLY SUSPICIOUS ACTIVITY IN CONNECTION WITH TRANSACTIONS IN LOW-PRICED SECURITIES BY TWO FIRM CUSTOMERS; THE RECORD BEFORE THE EXTENDED HEARING PANEL DID NOT SUPPORT ITS FINDING THAT MILLER FAILED TO CONDUCT ADEQUATE DUE DILIGENCE AND RESPOND TO RED FLAGS REGARDING THE TRADING ACTIVITIES OF A FOREIGN FINANCIAL INSTITUTION CUSTOMER; THE EXTENDED HEARING PANEL DISREGARDED EVIDENCE OF NUMEROUS MITIGATING FACTORS UNDER FINRA'S SANCTION GUIDELINES IN DETERMINING THE APPROPRIATE SANCTIONS FOR MILLER'S MISCONDUCT; AND THE SIX-MONTH PRINCIPAL SUSPENSION OF MILLER IS AN UNWARRANTED AND EXCESSIVE SANCTION, REPRESENTING A SIGNIFICANT DEPARTURE FROM PAST PRACTICE.
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