Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Larry Michaels (Michaels), previously associated with Crown Capital Securities, L.p., has at least 2 disclosable events. These events include one customer complaint, one regulatory event, alleging that Michaels recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on April 18, 2024.
Without admitting or denying the findings, Michaels consented to the sanctions and to the entry of findings that he exercised discretion authority without prior written authorization from the customers. The findings stated that Michaels’ member firm did not accept any of the customer accounts as discretionary and the firm’s WSPs prohibited the exercise of discretionary authority in brokerage accounts. The findings also stated that Michaels failed to notify his firm about the full nature of his participation in an OBA. Upon joining his firm, Michaels disclosed his role as an owner of an accounting business and that he was engaged in providing income tax preparation and accounting services and his firm approved this OBA based on this disclosed role. However, Michaels’ work for his company exceeded the scope of his disclosed role as he provided additional services to his company clients, some of which were his firms brokerage customers, including acting as a manager and/or consultant to assist his company clients in managing and growing their businesses. Additionally, Michaels acted as an incorporator and filed articles of incorporation for several businesses on behalf of his company clients, and was listed as a governor, who had the authority to make decisions on behalf of, at least one company.