Financial Advisor, Michael Dennis Jackson, Suspended By FINRA For Six Months For Allegedly Exercising Discretion In A Customer Account Away From Her Brokerage Firm
The Wolper Law Firm iscurrently investigating claims against Michael Dennis Jackson (CRD 2784958),a former Financial Adviser at Securities America in University Place,Washington. Michael Dennis Jackson has been in the securities industry since the 1990s and previously worked at Brecek & Young Advisors.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on December 1, 2018, Michael Dennis Jackson was sanctioned by FINRA for allegedly facilitating the opening of an account for a customer at a third-party brokerage firm and executing trades in that account without proper written trading authority. It was further alleged that the third-party account was opened because the customer became unhappy with losses realized in her brokerage account at Securities America. Michael Dennis Jackson allegedly represented that he could recover those losses for her for less commissions if a separate account was opened away from Securities America. The FINRA sanction specifically states:
Without admitting or denying the findings, Jackson consented to the sanctions and to the entry of findings that he placed an initial order in a customer’s new account without providing written notice to the new broker-dealer firm (new firm) and his member firm and placed orders in that account without notifying his firm. The findings stated that after Jackson’s customer complained about losses in her account at his firm he recommended that she open an account at a new firm that charged lower commissions for the purpose of trading options aggressively. The customer agreed and Jackson helped her open an account at the new firm. The customer deposited money in the new account and gave her login credentials to Jackson. Then, using those login credentials, Jackson began to place orders in the new account. The findings also stated that Jackson exercised discretion in the customer’s account without prior written authorization from the customer and his firm and exercised discretion in the customer’s account involving options contracts by placing more than 100 orders without first obtaining the customer’s approval and written authorization for each transaction. The findings also included Jackson exercised excessive trading in the customer’s account that was inconsistent with the customer’s investment objectives, financial situation, and needs. Jackson logged into the customer’s account and placed orders with increasing frequency, repeatedly closing positions shortly after opening them. When the last of the options that Jackson purchased for the customer had expired, the value of her new account had declined. That decline was due partly to the cost of Jackson’s trading, which represented an annualized cost-to-equity ratio of 31 percent.
For a full copy of the sanction, click https://www.finra.org/sites/default/files/fda_documents/2017055684102%20Michael%20D.%20Jackson%20CRD%202784958%20AWC%20va.pdf.
In October, 2017, Michael Dennis Jackson was terminated by Securities America for the conduct that led to his suspension by FINRA.
Separately, Michael Dennis Jackson has a history of customer complaints. In March 2018, a customer filed a complaint, alleging “The claimant alleges that the representative overconcentrated her account in a highly volatile ETN which was unsuitable. Additional allegations include negligence, breach of fiduciary duty, misrepresentation and breach of contract.” The matter was settled for $32,500. Three other complaints were filed against Michael Dennis Jackson between 2014-2017, alleging unsuitable investment recommendations, all of which were settled with payment made to the customer.
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.
The Wolper Law Firm is interested in speaking with clients of Michael Dennis Jackson as part of its investigation. We can be reached at 800.931.8452 or by email at firstname.lastname@example.org. 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.