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Unraveling the Case of Stockbroker Larry Michaels in Santa Ana, CA

Last Updated: February 2024 (Santa Ana, CA)

My Deep Dive into the Troubled World of Stockbroker Larry Michaels

I’ve taken a close look at many financial advisors and stockbrokers, but the story of Larry Michaels in Santa Ana, California, has particularly piqued my interest. Michaels is a stockbroker that has recently come under intense scrutiny due to alleged unsavory financial practices. Let me share with you the findings of my investigation.

An Introduction to Larry Michaels

So, who is Larry Michaels? He’s a professional in the financial sector, affiliated with Crown Capital Securities. At the core of his professional identity, he’s a broker, financial advisor, and a registered investment advisor. He’s also associated with what’s known as the Legacy Advisory Group – this is worth noting, especially since he’s had a past with J.P. Turner & Company (CRD 4351477).

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However, the reason you might have heard his name recently circles back to the fact that he’s being reviewed by the Financial Industry Regulatory Authority (FINRA) – the watchdog for securities firms and exchange markets in the United States.

Examining Larry Michaels’ FINRA Complications

Let’s get into the nitty-gritty of what’s truly concerning about Larry Michaels. He’s the subject of a FINRA investigation (Wells Notice examination #202006905), and this has set warning bells ringing for those who’ve trusted him with their finances. The allegations at hand include violations of FINRA Rules 3260(b) and 2010, centering around him making investment decisions without the required written consent from his clients. Additionally, there are issues surrounding his involvement in business ventures outside of his broker duties which he did not properly disclose, potentially infringing upon FINRA Rules 3270 and 2010.

Making a distinction between discretionary and non-discretionary accounts is crucial here. Discretionary accounts allow brokers like Michaels to trade at their discretion without client consent each time. This contrasts sharply with non-discretionary accounts that mandate explicit client approval. Needless to say, trading without client permission is highly problematic, as are any undisclosed conflicts of interest that might arise.

Is Larry Michaels the Face of Broker Misconduct?

Complaints from customers certainly suggest that everything isn’t quite right. Allegations have surfaced that include unsuitable investment advice and trades being made without the account holder’s authorization. These are serious claims, especially when you consider the aforementioned breaches of FINRA rules that Michaels is purported to have made.

These red flags raise critical questions about the safety of funds entrusted to Michaels. It’s a significant issue for those individuals who’ve invested their hard-earned money with him.

A Word to the Wise: If you’re facing financial losses potentially due to Larry Michaels’s actions, remember that you have options to seek redress. Legal advice is a smart first step, and there’s also the path of FINRA arbitration, which offers a way to claim and potentially recoup investment losses due to mismanagement.

In wrapping up, my exploration into Larry Michaels’s practices offers a stark warning for any investor. It underscores the necessity for diligence and the need for clarity in our financial dealings. As Warren Buffett once said, “It takes 20 years to build a reputation and five minutes to ruin it.” This tale also highlights the vital role that FINRA plays in the realm of investment protection.

Therefore, if you’re venturing into the world of investments or are already navigating it, always check the credentials and history of those you entrust with your financial future. You can verify a broker’s track record through their FINRA’s BrokerCheck service. Being informed and aware is your first line of defense against poor financial advice and adverse outcomes.

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