The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Michael Dennis Jackson. According to his publicly available FINRA BrokerCheck report, Michael Dennis Jackson has been the subject of multiple customer disputes.
Michael Dennis Jackson was a Washington based securities broker. He worked in the securities industry for twenty-one years. During his career, he was registered with four different securities firms. He is not currently working as a registered securities broker in any fashion.
His Registrations
- Nationwide Investment Services (1996-2000)
- Donahue Securities (2000-2001)
- Brecek & Young Advisors (2001-2009)
- Securities America (2009-2017)
The Allegations
- In May 2017, a customer alleged that Michael Dennis Jackson placed her into unsuitable investments. This case was settled for $66,500 in damages.
- In June 2017, a customer alleged that Michael Dennis Jackson placed him into a poor investment strategy. This case was settled for $12,058 in damages.
- In October 2017, he was terminated from his position at Securities America. This was due to allegations that he engaged in discretionary trading in a client’s account without the firm’s authorization. Michael Dennis Jackson was eventually sanctioned by FINRA due to these alleged actions. He was fined $10,000 and suspended from acting as a securities broker in any fashion for a period of six months.
- In March 2018, a customer alleged that Michael Dennis Jackson over-concentrated her account in a highly volatile ETN that turned out to be unsuitable. The customer also alleged that he handled their account negligently, breached his fiduciary duty, made material misrepresentations, and breached contract. This case was settled for $32,500 in damages.
What is Discretion?
Securities brokers are required to obtain their customer’s authorization before executing a transaction on their behalf. This is because investors have not surrendered their right to have final say on what they are invested in simply because they have hired a securities broker to recommend suitable investments. There is a trading practice known as discretion that allows brokers to execute trades in a customer’s account without first obtaining their authorization. However, before a broker like Michael Dennis Jackson can begin engaging in this process, they must first receive the account holder’s express written authorization. The broker’s member firm must also deem the account in question as suitable for discretionary trading.
Discretion can be an incredibly slippery slope due to how much power the broker now has. This process makes it a lot easier for securities brokers to trade the customer’s account in an unsuitable manner. Brokers with discretionary authority have an easier time placing their customers in investments they are not financially suited for. They also have an easier time trading their customers’ accounts to an excessive degree. Both of these acts can be detrimental to investors. That is why it is so crucial for the broker’s member firm to approve the account for discretionary trading. Because casual investors might often not be too aware of what exactly they are agreeing to when they authorize their broker to begin engaging in this practice.
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.
Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Michael Dennis Jackson, please contact Oakes & Fosher for a free and private consultation.
