• June 14, 2023
• Prospera Financial Services

Michael Trethewey (CRD#: 2964914) is a registered Broker and Investment Adviser at Prospera Financial Services, Inc., in Fort Lauderdale, FL.

Broker’s Background

He entered the securities industry in 1997 and previously worked for Wells Fargo Clearing Services, LLC; Morgan Stanley; Morgan Stanley & Co., Inc.; and Merrill Lynch, Pierce, Fenner & Smith, Inc.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in May 2023, FINRA sanctioned Michael Trethewey with the following: “For a period of 2 years, Prospera must supervise Tretheway on a heightened basis which must, at a minimum, include the following: Prospera Supervisor, Supervisor’s successor, or a designee must on quarterly basis: (1) randomly select the greater of ten (10), or ten percent (10%), of Tretheway’s Massachusetts customer accounts for review; (2) require Tretheway to utilize Prospera approved contact management system to document client contracts, discussions, account changes, and recommendations; (3) obtain and review a written statement, signed by Tretheway, in which Tretheway indicates that he has not conducted any outside business activities and does not have any outside investment accounts; and (4) obtain and review copies of all bank statements in Tretheway’s name or under his control; The compliance department’s annual audit must (1) be conducted on-site; (2) include the Boston Branch Office and Florida Branch Office; (3) a mandatory review of all of Tretheway’s Massachusetts customer accounts by the compliance department; (4) An in-person interview with Tretheway; (5) a mandatory review of Prospera’s Heightened Supervision Plan agreed to on May 10, 2023; and (6) a mandatory review of Tretheway’s personnel file to ensure compliance with this Order.”

The allegation states, “Due to recent disclosure incidents the Division placed conditions on Tretheway’s registration as a BD Agent and as an IAR of Prospera in Massachusetts.”

In addition, Michael Trethewey has been the subject of six other disclosures, including customer complaints and an employment termination:

• March 2023 — “Registered employee disclosed during Firm investigation that he made personal outside investment without prior approval by the Firm. No related customer involvement or harm identified.” Michael Trethewey was discharged by Wells Fargo Clearing Services, LLC.
• April 2018 — “CLIENTS ALLEGE, INTER ALIA, MISREPRESENTATION WITH RESPECT TO RECOMMENDATION TO LIQUIDATE ANNUITIES AND RELATED TAX RAMIFICATIONS. 2017 DAMAGES UNSPECIFIED.” The customer dispute was settled for $135,000.
• November 2014 — “THE CUSTOMERS ALLEGE UNAUTHORIZED TRADING, EXCESSIVE TRADING, UNSUITABLE INVESTMENT RECOMMENDATIONS AND MISREPRESENTATION FROM MAY 2006 TO JANUARY 2008.” The customer dispute was closed with no action.
• May 2013 — “CLIENT’S ATTORNEY ALLEGES, INTER ALIA, UNSUITABILITY WITH RESPECT TO INVESTMENTS 4/11/2008 – 4/27/2012.” The customer dispute was closed with no action.
• January 2003 — “CUSTOMER ALLEGED FINANCIAL ADVISOR MADE UNSUITABLE INVESTMENT RECOMMENDATIONS AND MADE TRADES IN HIS ACCOUNT WITHOUT PERMISSION. DAMAGES UNSPECIFIED.” The customer dispute was denied.
• December 2022 — “CUSTOMER ALLEGES UNSUITABLE INVESTMENTS.” The customer dispute was denied.

For a copy of Michael Trethewey’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.

The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.

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