Financial Advisor Michael Risko Has Been the Subject of Three Customer Complaints

• December 12, 2024
• Osaic Wealth

Michael William Risko (CRD#: 1975573) is a registered broker and investment advisor with Osaic Institutions, Inc., in Hyde Park, NY.

Broker’s History

He entered the securities industry in 1989 and previously worked with Invest Financial Corporation; Oppenheimerfunds Distributor, Inc.; Reliastar Financial Marketing Corp.; Washington Square Securities, Inc.; Fortis Investors, Inc.; AIM Distributors, Inc.; AIM Private Asset Management; Divident Capital Securities, LLC; Barclays Global Investors Services; Barclays Global Fund Advisors; and Essex National Securities, 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 January of 2024, Michael Risko became the subject of a customer dispute alleging, “A paperwork and processing error negated the redemption of a non-traded REIT due to death for Q4-2022. Share redemptions were suspended for Q1-2023 in advance of going public.” The damage amount requested was $45,420.00 and the customer dispute settled for $21,598.31.
In addition Michael Risko has been the subject of four other FINRA disclosures:
• June 2023—“ Representative sold a REIT that was allegedly unsuitable for the client’s investment profile.” The customer dispute settled for $50,000.
• December 2022—“ Poor service caused client to miss REIT quarterly distribution.” The customer dispute was denied.
• January 2011—“Civil Judgment/Lien $7,210.82.”
• March 2010—“Civil Judgment/Lien $781.65.”
• March 2010— “Civil Judgment/Lien $4,013.13.”

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

We Help Investors Recover Investment Losses

The Wolper Law Firm is currently investigating claims for those clients who have experienced investment loss in Non-Traded Real Estate Investment Trust. Non-Traded Real Estate Investment Trusts (“Non-traded REITs”) do not trade a public securities exchange. For this reason, non-traded REITs can be illiquid, meaning investors may be unable to sell their investments on demand. Typically, the commissions generated on non-traded REITs are higher than industry norm and the investments themselves may be subject to extreme volatility due to associated risk factors. Non-traded REITs are only suitable for investors with a long-term investment horizon who are willing to accept higher levels of risk in their investments.

Financial Advisors often sell non-traded REITs because the commission available is higher than traditional investment products like stocks and bonds. Many Financial Advisors do not adequately explain the risk factors of non-traded REITs and the investor’s inability to sell the investment upon demand.
REITs have traditionally been sold to customers for their high dividend yield. However, many factors impact the ability of the REIT to maintain dividend and share price stability, including the fluctuation in interest rates, the amount and cost of leverage used by the REIT and collectability of the rents or mortgage payments that comprise the underlying assets within the REIT.

Investors may be able to recover investment losses against the brokerage firms that sold this product because of failed due diligence prior to recommending that their retail clients invest. 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 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 mwolper@wolperlawfirm.com.