The allegations read: Michael b. Barnett was a subject of the customers' complaint against his member firm that asserted the following causes of action: violation of illinois' securities act, 815 ilcs 5/12 et al.; breach of fiduciary duty; negligence/negligent misrepresentation and omission; breach of contract; restitution; common law fraud; and negligent supervision. The causes of action related to claimants' allegations that respondent and respondent's registered representative sold all of the claimants' blue chip stocks and invested all of the funds in their joint account and an ira in a highly speculative oil and gas company. Claimants asserted that this lack of diversification exposed them to massive risk which was contrary to their conservative investment objectives and low-risk tolerance level.
