Many investors are unaware of the legal recourse available to them after losing money due to securities broker misconduct and/or negligence. The truth is investors who have lost money in this fashion may be entitled to damages. The law firm of Oakes & Fosher is interested in hearing from investors who believe this may be them.
Oakes & Fosher is currently investigating the possible misconduct and/or negligence of former securities broker Michael Paesano. According to his publicly available FINRA BrokerCheck report, Michael Paesano has been the subject of numerous customer complaints received during and after his career.
Michael Paesano operated most recently as a New York based securities broker. He worked in the securities industry for twenty-six years. During his career, he was registered with eleven different securities firms.
His Registrations
- County Natwest International (1987-1988)
- Nomura Securities International (1989-1996)
- Exco Usa Securities (1996-1998)
- Fimat USA, Inc. (1998)
- Schonfeld Securities (1998-1999)
- Baylock & Partners (1999)
- McDonald Investments (1999-2000)
- Mellon Financial Markets (2002-2003)
- MBSC (2003-2005)
- UBS Financial Services (2005-2011)
- Morgan Stanley (2011-2017)
The Allegations
- In January 2010, customers alleged that Paesano invested them in unsuitable securities that he also misrepresented to them. This case was settled for $475,000 in damages.
- In March 2011, a customer alleged that Michael Paesano made material misrepresentations and omissions and made unsuitable investment recommendations concerning structured notes issued by Lehman Brothers. This case was settled for $124,000 in damages.
- In April 2011, a customer alleged that Michael Paesano made unsuitable recommendations and failed to diversify her accounts. This case was settled for $117,000 in damages.
- In November 2011, customers alleged securities fraud, common law fraud, misrepresentation, unsuitability, breach of fiduciary duty, failure to disclose a material conflict of interest, negligence, and violation of federal and state securities laws. This case was settled for $155,000 in damages. He received two identical complaints in December 2011, settled for $200,000, and April 2012, settled for $225,000 in damages.
- In June 2012, customers alleged that Michael Paesano made unsuitable investment recommendations, misrepresentations, and omissions with the purchase of structured notes. The alleged transgressions taking place between November 2007 and March 2008. This case was settled for $170,000 in damages.
- In September 2014, a customer alleged unsuitability. This case was settled for $245,000 in damages.
- In December 2016, Michael Paesano was discharged from his position at MSWM following allegations that he exercised discretion in an unsuitable and unauthorized manor.
- In October 2017, customers alleged that Michael Paesano excessively traded their account. The alleged transgressions taking place between 2011 and 2016. This case was settled for $1.2 million.
- In March 2018, a customer alleged that Michael Paesano excessively traded their account, mismanaged their account, and failed to notify him of changes in the trading strategy. The client believes this alleged failure equated to fraud. This case was settled for $89,774 in damages.
- Also in March 2018, an attorney, on behalf a customer, alleged excessive trading and selling away. This case was settled for $145,000 in damages.
What Does This Mean?
Securities brokers have a legal obligation to only recommend securities to customers that are suited for them. This suitability is determined by factors that include the customer’s financial situation, investment objectives, and liquidity needs. Securities brokers are expected to conduct the necessary due diligence required to discern if a security is suitable for a particular customer based on the above mentioned factors.
Securities brokers are also obligated to trade their customers’ account suitably even if the securities themselves are suitable. What this means is that the broker needs to execute trades at a rate that is suitable for their customer. Sometimes, securities brokers, like Michael Paesano, trade their customers’ accounts so excessively that it generates unnecessary fees and causes them to incur preventable trading losses.
Oakes & Fosher Can Help
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 Paesano, please contact Oakes & Fosher for a free and private consultation.
