Beware of David Miller (Alchemy Of Scale CEO): Permanently Barred and Faced SEC Action

David Miller of PeachCap has launched a new company (probable scam) Alchemy of Scale. He was involved with PeacCap which faced stringed regulatory action from the SEC and is now looking for a new way to dupe investors.

Be extremely cautious when dealing with this man.

More on David Miller below:

FINRA Permanently Bars PeachCap Broker After Testimony Refusal

The Financial Industry Regulatory Authority (FINRA) has permanently barred David Harrison Miller, a former stockbroker registered with PeachCap Securities Inc., from associating with any FINRA member firm in any capacity. The disciplinary action stems from David Miller’s refusal to testify during a regulatory investigation into his conduct while associated with PeachCap. The decision was formalized through a Letter of Acceptance, Waiver, and Consent (AWC), signed on July 27, 2023 (Case No. 2019063946701).

FINRA’s investigation into David Miller began after a July 2019 arbitration claim revealed potential violations of industry rules. Between 2019 and 2020, David Miller was named in four separate customer arbitration matters, prompting FINRA to scrutinize his handling of client investments. The core issues under review included the suitability of his investment recommendations and his general management of client accounts.

On July 10, 2023, as part of its formal inquiry, FINRA issued a request for David Miller to provide sworn testimony related to these allegations. In response, David Miller confirmed via email that he had received the request but refused to cooperate with the investigation. By doing so, he violated FINRA Rules 8210 and 2010, which require registered representatives to provide information and cooperate with investigations when requested by the regulator.

SEC Action and History of Misconduct

This isn’t the first time David Miller has faced regulatory sanctions. On December 22, 2021, the Securities and Exchange Commission (SEC) also took enforcement action against him. In SEC Order No. 3-20689, David Miller was barred from the investment industry for engaging in unauthorized trading and making unsuitable investment recommendations.

According to the SEC, in April 2016, David Miller launched a hedge fund called The Pessego Long Short Fund LP and raised more than $4.6 million through the sale of limited partnership interests to advisory clients and other investors. Marketing materials described the fund as a vehicle designed to preserve capital while achieving attractive returns with low exposure. However, the fund’s actual trading strategy was high-risk and speculative, fundamentally misaligned with what was advertised.

Despite its volatility and unsuitability, David Miller recommended the fund to clients of PeachCap Tax Advisory LLC (PCTA). The fund ultimately suffered catastrophic losses, losing over 90% of its value and shutting down by 2017.

Violations by PeachCap Tax Advisory LLC

The SEC also uncovered serious compliance deficiencies at PeachCap Tax Advisory LLC, the advisory firm affiliated with David Miller. Between 2017 and 2018, PCTA executed 492 principal trades with six advisory clients without issuing proper transaction-specific disclosures or securing client consent a direct violation of federal securities laws.

Moreover, PCTA failed to implement any written supervisory policies regarding volatility-linked exchange-traded products (ETPs). Despite this, firm advisers exercised discretion to purchase and hold leveraged ETPs in client portfolios for longer durations than these products were intended for. These positions subjected investors to increased and inappropriate risk, leading to significant losses.

These regulatory failures collectively resulted in violations of both the Securities Act of 1933 and the Investment Advisers Act of 1940, implicating both David  Miller and PCTA.

Customer Disputes and Arbitration Settlements

Public disclosures by FINRA reveal that David Miller has been named in at least 10 customer-initiated investment-related disputes while registered with various broker-dealers, including PeachCap Securities Inc. The complaints generally allege unsuitable investment advice, mismanagement, breach of fiduciary duty, and losses due to high-risk investments.

• On July 15, 2019, one customer complaint involving David Miller’s conduct at PeachCap was settled for $50,000, based on allegations that David Miller recommended direct investments that later underperformed.
  
• In another notable case, FINRA Arbitration No. 19-03552, filed on March 3, 2021, David Miller was accused of mismanaging client accounts. This case also resulted in a settlement.
  
• In April 2021, David Miller settled a third arbitration (FINRA Arbitration No. 20-02206) for $24,000, involving claims that he had unsuitably traded alternative investments, including real estate securities and other non-traditional assets, while registered with Investacorp Inc.
  
• Perhaps the most substantial settlement came on April 29, 2021, in FINRA Arbitration No. 20-00531, where Miller was alleged to have pushed high-risk real estate investments. The matter was resolved with a $455,000 payout to the investor.
  
• Miller was also named in a civil lawsuit (Civil Action No. 2021CV348012), where a customer accused him of breaching fiduciary duties in the sale of investments through PeachCap Tax Advisory LLC.

Career and Regulatory History

David Harrison Miller was registered as a stockbroker with PeachCap Securities Inc. from October 3, 2015, to December 17, 2021. His association with the firm came to an end shortly before the SEC barred him from the industry.

With both the SEC and FINRA imposing permanent bans, David Miller is effectively prohibited from working in any regulated capacity within the U.S. financial industry. His refusal to cooperate with FINRA, combined with a documented pattern of questionable investment practices and regulatory violations, has ended a career marred by misconduct and poor compliance oversight.

The actions taken by FINRA and the SEC against David H. Miller serve as a reminder of the serious consequences financial professionals face when they violate industry rules or fail to uphold their duty to clients. Regulatory bodies continue to stress the importance of full cooperation during investigations and the need for firms to implement robust compliance procedures—particularly when managing high-risk products and client funds.

Miller’s case underscores how a combination of unsuitable recommendations, compliance failures, and a refusal to cooperate can lead to not only industry bans but also substantial financial harm to investors.

FINRA Sanctions Miller for Failing to Cooperate

FINRA launched an investigation into Miller after reviewing customer arbitration claims filed between 2019 and 2020. The regulator aimed to evaluate whether Miller’s investment recommendations while affiliated with PeachCap Securities violated industry standards.

On July 10, 2023, FINRA formally requested Miller’s on-the-record testimony as part of this investigation. Though Miller acknowledged receiving the request, he declined to provide testimony. His refusal constituted a direct violation of FINRA Rule 8210, which requires cooperation in regulatory inquiries, and FINRA Rule 2010, which mandates high standards of commercial honor and just and equitable principles of trade.

Miller did not admit or deny the findings but agreed to the sanctions by signing the AWC. As a result, FINRA imposed a permanent bar, prohibiting him from working with any FINRA-regulated firm in any role, effectively ending his career in the securities industry.

SEC Enforcement Action: Unsuitable Advice and Compliance Failures

This isn’t Miller’s first encounter with serious regulatory consequences. On December 22, 2021, the SEC issued an order (No. 3-20689) imposing sanctions against Miller and PeachCap Tax Advisory LLC (PCTA), a firm affiliated with him.

The SEC’s investigation revealed that Miller and PCTA violated multiple provisions of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, and the Investment Company Act of 1940.

Misrepresentation of Investment Strategy

At the center of the SEC’s case was The Pessego Long Short Fund LP, a hedge fund formed by Miller in April 2016. Between May and October 2016, Miller raised more than $4.6 million by selling limited partnership interests in the fund to advisory clients and others. Promotional materials described the fund as focused on capital preservation and delivering attractive returns with low exposure.

However, the SEC found that the fund’s actual strategy involved high-risk trading, which was inconsistent with its stated objectives. The fund ultimately lost over 90% of its value by the end of 2017 and was shut down.

Miller allegedly recommended this fund to several PCTA clients for whom it was unsuitable, resulting in significant investor losses.

Compliance Deficiencies

In addition to misrepresenting the fund’s strategy, the SEC determined that PCTA failed to establish adequate written compliance policies for high-risk products. Specifically, the firm lacked controls over the use of volatility-linked exchange-traded products (ETPs). PCTA’s investment advisers purchased and held leveraged ETPs in client accounts for extended periods, contrary to the products’ intended short-term use, exposing clients to excessive and inappropriate risk.

Miller and PCTA agreed to a $65,000 penalty and cease-and-desist orders but did not admit or deny the SEC’s findings.

Customer Complaints and Arbitration Claims

Miller’s regulatory issues have been accompanied by a string of customer-initiated disputes. According to FINRA’s BrokerCheck, Miller has been named in multiple investment-related complaints, many of which have resulted in substantial settlements.

PeachCap Securities Inc. – $250,000 Settlement

On September 9, 2021, FINRA Arbitration Case No. 20-00329 was settled for $250,000. The client alleged that Miller recommended unsuitable investments, particularly direct investments and real estate securities, leading to significant financial losses.

PeachCap Tax Advisory LLC – $455,000 Settlement

In FINRA Arbitration Case No. 20-00531, filed by a PeachCap Tax Advisory LLC client, the investor claimed that Miller recommended poorly performing investments. This case was settled on April 29, 2021, for $455,000.

Investacorp Inc. – $24,000 Settlement

A client of Investacorp Inc., another firm where Miller was previously registered, filed FINRA Arbitration Case No. 20-02206 alleging unsuitable trading in direct investments and real estate securities. The firm settled the matter on April 13, 2021, by paying $24,000 in damages.

Civil Suit – Fiduciary Duty Breach Alleged

In a civil lawsuit filed April 29, 2021 (Case No. 2021CV348012), a client of PeachCap Tax Advisory LLC accused Miller of breaching his fiduciary duty, seeking compensatory damages related to investment losses. This matter remains ongoing.

Employment History

Miller was registered as a stockbroker with PeachCap Securities Inc. from October 2015 through December 2021. During his time at the firm, he also worked closely with PeachCap Tax Advisory LLC, offering financial planning and investment advisory services.

His history also includes registration with other firms such as Investacorp Inc., where additional claims regarding unsuitable investments have been made.

Investor Resources

Investors who believe they suffered losses due to David Miller’s investment recommendations or the misconduct of PeachCap Securities Inc. or PeachCap Tax Advisory LLC may have legal options for recovery.

The Soreide Law Group represents investors nationwide in securities arbitration and litigation. The firm operates on a contingency fee basis, meaning clients pay no legal fees unless money is recovered. If you have concerns about your investments with David Miller, call (888) 760-6552 or visit Soreide Law Group’s website for a free consultation.

What Is Unauthorized Trading?

Unauthorized trading happens when a broker or financial advisor makes trades in a client’s account without prior consent or written approval. This breaches trust and often violates regulatory and fiduciary duties. Depending on severity, it can trigger:

• Civil enforcement by FINRA, SEC, or state regulators
  
• Criminal charges, such as wire fraud or securities fraud, if accompanied by intent to defraud

Scale & Trends: Industry-Wide Impact

FINRA Arbitration Data

• In May 2025, there were 80 unauthorized trading cases filed (compared to 63 in 2024).
  
• Year-end totals have fluctuated:
  
  • 2022: 149 cases
    
  • 2023: 160 cases
    
  • 2024: 175 cases
    
  • 2025 YTD (May): 80 cases.
    
• Customer recovery rates: Only ~31% of arbitration cases result in awards to investors.

FINRA Actionable Outcomes

• In 2022, FINRA logged 149 unauthorized trading arbitrations, making it one of the most common broker misconduct issues.
  
• Fines for such violations range from $1,000 to $155,000, plus potential suspensions (31 days–2 years) or a lifelong bar.

Regulatory Responses

FINRA

• Acts under Rule 2020 (prohibiting fraudulent or deceptive practices).
  
• Frequently bars individuals involved in unauthorized trades.
  

SEC & Civil Penalties

• Files civil enforcement actions for defrauding clients, especially when misappropriation or concealment of trades is involved.
• Monitors firms’ recordkeeping to detect trading anomalies.

Criminal Exposure

• Unauthorized trading can escalate to wire fraud, especially with intent to deceive or steal from clients.

High‑Profile Examples

Morgan Stanley (Dec 2024)

• A group of four former advisors executed hundreds of unauthorized transfers, misappropriating millions from client accounts.
  
• The SEC fined Morgan Stanley $15 million for supervisory lapses; four advisors were barred, and criminal prosecutions followed.

Robinhood Financial (Mar 2025)

• FINRA fined $26 million and ordered $3.75 million in restitution to clients due to failures in supervision and anti‑money laundering, including letting unauthorized trades slip through.

Two Sigma (2024)

• SEC investigated a senior researcher who allegedly engaged in unauthorized trading adjustments, leading to $450 million in gains and $170 million in losses. Potential settlement could reach $100 million.

Why It Matters

• Undermines trust in the financial advisory profession
  
• Potential for significant financial harm, especially when manipulation or misappropriation is involved
  
• Illustrates the importance of firm supervisory frameworks and strict adherence to rules to prevent misconduct.

Final Thoughts

Unauthorized trading remains a persistent and pervasive issue in U.S. brokerage practices. With hundreds of FINRA arbitrations annually and consistent SEC and FINRA enforcement, the industry continues to tighten compliance protocols. High-profile cases serve as powerful reminders: advisors and firms must maintain strict oversight to protect client interests, and violations carry serious legal, financial, and career consequences.