The study on "How Widespread and Predictable is Stock Broker Misconduct?" by SLCG, past customer complaints against individual brokers can serve as predictors of future complaints. McCann, Qin, and Yan's research shows that incorporating the complaint histories of co-workers greatly enhances the ability to predict complaints against brokers with no previous complaints. They also established that customer complaints that were denied, rather than just settlements and awards, are valuable for anticipating future investor harm.

According to Egan, Matvos, and Seru, the regulatory landscape and job market do not effectively remove subpar brokers from the industry but rather direct them over time to firms that employ brokers with significantly more customer complaints. These brokerage firms, characterized by lenient hiring practices and minimal compliance standards, focus on targeting less knowledgeable 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.

Martin Craig Limbaughs 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. 13.40% 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 Martin Craig Limbaugh 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") specializes in finance, economics, and investment management consulting services. We offer expert witness services tailored to meet the needs of law firms, banks, brokerage firms, and individuals navigating complex litigation. Our team predominantly comprises PhD and MA-level professionals with varied backgrounds spanning academia, industry, and government. Numerous team members have offered expert testimony in state and federal courts, as well as in diverse arbitration forums.

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