The law firm of Oakes & Fosher is presently investigating the possible misconduct of securities broker Michael Pepe. According to his publicly available FINRA Broker Check report, Michael Pepe has been the subject of multiple customer disputes over the course of his career.

Michael Pepe is a Florida based securities broker. He worked in the securities industry for thirty-five years. During his career, he was registered with six different securities firms.

His Registrations

  • J.B. Hanauer & Co. (1983-1990)
  • Smith Barney Inc. (1990-1994)
  • UBS Financial Services (1994-2007)
  • Gunnallen Financial (2007-2010)
  • JHS Capital Advisors (2010-2015)
  • Ameriprise Financial Services (2015-Present)

The Allegations

  • In April 2002, a customer alleged that Michael Pepe executed unauthorized trades in their account. This case was settled for $200,000 in damages.
  • In March 2005, customers alleged that Michael Pepe made unsuitable investment recommendations and over-concentrated their accounts in equities. This case was settled for $159,500 in damages.
  • In May 2018, a customer alleged that Michael Pepe made unauthorized trades and recommended unsuitable securities. The customer alleged that if Pepe had invested them suitably, they would have seen profits of approximately $750,000. This case was settled for $26,000 in damages.

Unauthorized Trading

Securities brokers are obligated to only act in the best financial interests of their customers. Part of this means that they are to receive their customer’s authorization before they execute trades. This is because investors are entitled to the opportunity to decide for themselves if they want to be invested in a particular product. Despite this, many securities brokers continue to engage in unauthorized trading. This is usually done because brokers want to purchase unsuitable products that their customers would not have otherwise authorized.

Unsuitable Recommendations

Securities brokers are also obligated to only recommend securities to customers that are suited for them. Securities brokers are expected to conduct the necessary due diligence to determine what securities are suitable for what investors. They can do this by analyzing the factors like the customer’s previously stated investment objectives, risk tolerance, financial situation, and liquidity needs. Despite this, many securities brokers continue to recommend securities to customers that are not suitable for them.

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 Pepe, 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.