Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Michael Davis (Davis), currently associated with Money Concepts Capital CORP, has at least one disclosable event. These events include one customer complaint, alleging that Davis recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $112,000.00 on October 25, 2024.
Firm became aware of the allegations on 2/2/2023. The customer alleges her accounts lost 50K and felt the RR should be responsible for 25K. Upon review, the firm learned three accounts were established: Two were invested with professional money managers, and the customer’s time horizon for those investments was 5 or more years. A third account was established and invested solely in a money market. This third account had cash management services such as debit cards and checking privileges for any unanticipated (emergency) needs. The customer made numerous withdrawals which decreased the cash balance in the money market, then periodically instructed the RR to journal funds from the two investment accounts meant to be long-term investments. The firm determined the decreases were due to the customer’s withdrawal activity coupled with market conditions. 10/25/2024 Customer alleges Breach of Contract, Breach of Fiduciary Duty, and Demand for Payment of Advisory fees. Customer hired an attorney and that the firm received a demand letter on 10/25.