Broker Investigation: Oppenheimer Advisor Michael Rosenmayer

shutterstock_1081038The investment attorneys of Gana LLP are interested in speaking with clients of Michael Rosenmayer (Rosenmayer). According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) Rosenmayer has been the subject of at least 17 customer complaints. The customer complaints against Rosenmayer allege securities law violations that claim unsuitable investments, misrepresentations, failure to supervise, and breach of fiduciary duty among other claims. The most recent complaint was filed in July 2014, and alleged $40,698 in damages due to claims that the broker omitted information concerning the security that was purchased and that it was inappropriate given the client’s age and health.

Rosenmayer entered the securities industry in 1993. From February 2003, until June 2007, Rosenmayer was associated with RBC Dain Rauscher Inc. Since June 2007 onward Rosenmayer has been associated with Oppenheimer & Co. Inc. out of the firm’s Los Angeles, California branch office location.

All advisers have a fundamental responsibility to deal fairly with investors including making suitable investment recommendations. In order to make suitable recommendations the broker must have a reasonable basis for recommending the product or security based upon the broker’s investigation of the investments properties including its benefits, risks, tax consequences, and other relevant factors. In addition, the broker must also understand the customer’s specific investment objectives to determine whether or not the specific product or security being recommended is appropriate for the customer based upon their needs.

The number of customer complaints against Rosenmayer is high relative to his peers. According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records. Brokers must publicly disclose certain types of reportable events on their CRD including but not limited to customer complaints. In addition to disclosing client disputes brokers must divulge IRS tax liens, judgments, and criminal matters. However, FINRA’s records are not always complete according to a Wall Street Journal story that checked with 26 state regulators and found that at least 38,400 brokers had regulatory or financial red flags such as a personal bankruptcy that showed up in state records but not on BrokerCheck. More disturbing is the fact that 19,000 out of those 38,400 brokers had spotless BrokerCheck records.

The investment lawyers at Gana LLP represent investors who have suffered investment losses due to allegations of wrongdoing. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.