In their study "How Widespread and Predictable is Stock Broker Misconduct?" researchers at SLCG discovered that past customer complaints against individual brokers can indicate the likelihood of future complaints. McCann, Qin, and Yan also found that incorporating co-workers' complaint histories notably enhances the predictive accuracy for brokers without prior complaints. Furthermore, they determined that customer complaints that were denied - beyond just settlements and awards - are valuable in forecasting potential investor harm.

Egan, Matvos, and Seru's research underscores that, rather than eliminating underperforming brokers from the industry, the regulatory environment and labor market tend to funnel these brokers towards firms that hire individuals with disproportionately high numbers of customer complaints. These firms typically maintain loose hiring criteria and exhibit lenient compliance standards, specializing in exploiting inexperienced investors.

Dimmock et al. [2016] in a related study find that financial fraud is contagious. They find that a broker's propensity to commit financial fraud is significantly influenced by his or her coworkers' propensity to commit fraud after controlling for firm culture, branch atmosphere, market conditions and state regulatory environment.

Christopher Glenn Lanes current employer, is one of the 30 highest risk brokerage firms measured by the percent of brokers at the firm who have customer complaints disclosed on their BrokerCheck reports. 25.78% of 's brokers have customer complaints compared to only 2.71% of all brokers who have complaints.

If you have questions about this post, about and/or Christopher Glenn Lane or about the management of your accounts, please contact SLCG for an initial consultation or email us at BrokerInquiry@SLCG.com.

SLCG Economic Consulting, LLC

SLCG Economic Consulting, LLC ("SLCG") provides finance, economics, and investment management consulting services. Our clientele includes law firms, banks, brokerage firms, and individuals embroiled in complex litigation, for whom we offer expert witness services. Our team consists of highly qualified professionals holding PhD and MA-level degrees, with extensive experience across academia, industry, and government. We have provided expert testimony in state and federal courts, and in arbitration forums.

SLCG is a wholly owned subsidiary of McCann Yan Holdings, Inc., a Virginia incorporated company based in Northern Virginia.