Did you lose money investing with Michael Carl (CRD# 3023492)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Michael Carl. If you suffered losses investing with Michael Carl, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
As of February 18, 2023, Michael Carl’s FINRA BrokerCheck Report contains the following:
BARRED: FINRA has barred this individual from acting as a broker or otherwise associating with a broker-dealer firm.
Disclosure Events
1 Customer Dispute
1 Regulatory Event
June 30, 2021 – An AWC was issued in which Carl was barred from association with any FINRA member in all capacities. Without admitting or denying the findings, Carl consented to the sanction and to the entry of findings that he made improper use of his member firm’s funds by submitting altered invoices and fabricated emails to the firm, causing it to pay expenses in excess of $19,000 to vendors, on behalf of two of its advisory clients that were not entitled to have those expenses paid. The findings stated that the altered invoices and fabricated emails were submitted in order to cause the firm to pay vendors for purported consulting services provided to an advisory client when, in fact, no such services had been provided to that client. Carl wanted the firm to pay the vendors for services it had provided to the two advisory clients that did not have expense agreements with the firm. The findings also stated that Carl engaged in an undisclosed OBA wherein he was a principal of a holding company that he used to rent his family’s vacation property. Carl later began using the company to provide consulting services to investment advisors, including clients of his firm. Carl solicited a firm advisory client to enter into a contract with the company. Part of the services the company agreed to provide was obtaining the best custodian for the client, which represented a conflict of interest in that Carl’s job at the firm entailed, in part, attracting advisory clients to the firm’s custodial services. Similarly, Carl solicited another firm client to contract with the company. The proposed agreement, that was never executed, contained a confidentiality provision prohibiting it from being disclosed to the firm and conditioned favorable firm pricing if the client were to become a client of the company. Carl was compensated for his work for the company, including receiving more than $40,000. Carl failed to provide written notice to the firm of the company at any time, including when it began providing consulting services. In addition, Carl falsely answered “no” when asked on multiple annual firm compliance questionnaires if he had a disclosable OBA, including whether he had received compensation or had a reasonable expectation of compensation through a business activity outside of the firm. (FINRA Case #2019062574901)
Current and Previous Registrations
08/05/2010 – 05/09/2019 CHARLES SCHWAB & CO., INC. (CRD#:5393) Chicago, IL
05/05/2009 – 06/16/2010 CAPITAL BROKERAGE CORPORATION (CRD#:10465) RICHMOND, VA
08/13/2008 – 02/23/2009 CAPITAL BROKERAGE CORPORATION (CRD#:10465) RICHMOND, VA
06/05/2007 – 07/29/2008 LINCOLN FINANCIAL DISTRIBUTORS, INC. (CRD#:145) RADNOR, PA
01/16/2003 – 06/12/2007 AMERIPRISE FINANCIAL SERVICES, INC. (CRD#:6363) MINNEAPOLIS, MN
08/31/2001 – 05/01/2002 ONE GROUP DEALER SERVICES, INC. (CRD#:104234) COLUMBUS, OH
06/28/2000 – 06/15/2001 NATIONAL PLANNING CORPORATION (CRD#:29604) LOS ANGELES, CA
11/18/1998 – 05/02/2000 PRUDENTIAL SECURITIES INCORPORATED (CRD#:7471) NEW YORK, NY
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires broker’s to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokers and the brokerage firms they work for that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing with Michael Carl and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
