- November 8, 2023
- Center Street Securities
Michael Corrada (CRD# 709158) was a previously registered broker and financial advisor.
He entered the securities industry in 1980 and previously worked for Center Street Securities, Inc.; Coastal Equities, Inc.; Centaurus Financial, Inc.; SunTrust Investment Services, Inc.; BB&T Investment Services, Inc.; Crestar Securities Corporation; Signet Investment Corporation; E.F Hutton & Company Inc.; Merrill Lynch, Pierce, Fenner & Smith Incorporated; and Anderson & Strudwick, Incorporated.
Current and Past Allegations of Conduct Leading to Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in September 2023, Michael Corrada became the subject of a customer dispute where, “Client alleges registered representative recommended and sold an unsuitable investment.” The damage amount requested is $200,000 and the customer dispute is still pending.
In addition, Michael Corrada has been the subject of several other customer complaints, which include the following:
- September 2023—“Claimant alleges failure to conduct reasonable and adequate due diligence on offering and unsuitable investments.” The customer dispute is still pending.
- April 2022—“ Client(s) alleges that the registered representative’s recommendation of a corporate bond was unsuitable.” The customer dispute settled for $255,000.
- August 2011—“ CLIENT ALLEGING AMONG OTHER CLIAMS, LACK OF SUITABILITY AND FAILURE TO SUPERVISE IN THE RECOMMENDATION OF RMK FUNDS.” The customer dispute settled for $67,500.
- April 2010—“ RHK BOND FUND PURCHASED IN 2004, CLIENT LOVED FUND, IT PERFORMED FOR APPROX. FOUR YEARS, FUND COLLAPSED IN 2008. CLIENT’S ATTORNEY ALLEGED, AMONG OTHER THINGS, LACK OF SUITABILITY AND MISREPRESENTATION OF THE INVESTMENT.” The customer dispute settled for $14,500.
- April 2009 – “ THE PLAINTIFFS ALLEGE THAT SUNTRUST INVESMENT SERVICES, INC AND THE REPRESENTATIVE FAILED TO INFORM THE PLAINTIFFS THAT THEIR CLOSE-END FUND WAS “JUNK BONDS ANS UNINSURED”. The customer dispute settled for $10,000.
- April 2008—“ THE CLIENTS’ ATTORNEY ALLEGED THAT THE INVESTMENT WAS MISREPRESENTED.” The customer dispute was denied.
For a copy of Michael Corrada’s FINRA BrokerCheck, click here.
We Help Investors Recover Investment Losses
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.
Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.
Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at email@example.com.