The law firm of Oakes & Fosher is presently investigating the alleged misconduct of securities broker Michael G. Solomon. According to his publicly available FINRA BrokerCheck report, Michael G. Solomon has been the subject of multiple customer disputes.

Michael G. Solomon is a New York based securities broker. He has worked in the securities industry for twenty-nine years. During his career, he has been registered with six different securities firms.

His Registrations

  • D.H. Blair & Co. (1990-1998)
  • Prime Charter (1997-2002)
  • Oppenheimer & Co. (2002-2007)
  • Joseph Gunnar & Co. (2007-2009)
  • HFP Capital Markets (2009-2011)
  • Maxim Group (2011-Present)

The Allegations

  • In August 2006, a customer alleged that Michael G. Solomon failed to adequately explain what margin trading was to them. This case was settled for $5,746 in damages.
  • In January 2007, a customer alleged that Michael G. Solomon handled their account negligently, breached his fiduciary duty, breached contract, and recommended unsuitable securities. This case was settled for $85,000 in damages.
  • In April 2018, a customer alleged that Michael G. Solomon engaged in excessive and unsuitable trading. This case was settled for $200,000 in damages.
  • In May 2019, a customer alleged that Michael G. Solomon recommended highly speculative securities and did not disclose trade remuneration. This case is currently pending. The customer is seeking $50,000 in damages.

Unsuitable Trading

Securities brokers like Michael G. Solomon have an obligation to their customers to only recommend securities to them that they are financially suited for. This is because most investors rely on their brokers to tell them which investments are suitable as they lack the knowledge and experience to discern this information on their own. Brokers can determine if a particular investment is suitable for an investor by looking at the investor’s previously stated investment objectives, financial situation, liquidity needs, and risk tolerance. Brokers are expected to use these factors to determine suitability and cannot excuse themselves by claiming they were unaware an investment would be unsuitable.

Excessive Trading

Securities brokers have an obligation to their customers to trade their accounts suitably, both in the securities they recommend and the frequency in which they execute trades. Many brokers will trade their customers’ accounts excessively. This can be detrimental to investors as it causes them to incur unnecessary fees and trading losses. When securities brokers trade investor accounts with the express purpose of generating additional commissions, it is referred to as churning. This is a fraudulent and deceptive trading practice that is unfortunately relatively common.

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 G. Solomon, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.