The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Michael Siegel. According to his publicly available FINRA BrokerCheck report, Michael Siegel has been the subject of multiple customer disputes.
Michael Siegel was a New Jersey based securities broker. He worked in the securities industry for nineteen years. During his career, he was registered with thirteen different securities firms.
- Broadway Financial Investment Services Corp. (1989-1992)
- First Institutional Securities Corp. (1989-2002)
- A.G. Edwards & Sons (1995)
- AXA Advisors (2008)
- Merrill Lynch (2008)
- MetLife Securities (2009-2010)
- Hornor, Townsend & Kent (2010-2011)
- OneAmerica Securities (2012-2013)
- The Investment Center (2013)
- Foresters Equity Services (2013)
- Concorde Investment Services (2013-2014)
- National Securities Corporation (2014-2016)
- In July 2016, a customer alleged that Michael Siegel misrepresented details regarding their investments, made unsuitable trades, engaged in fraud, stole funds from them, forged their signature on documents, and churned their account. All these allegations were in connection REIT and Equity investments made between 2013 and 2016. This case was settled for $150,000 in damages.
- Also in July 2016, a customer alleged that Michael Siegel made material misrepresentations, recommended unsuitable securities, engaged in fraud, and churned their account. This case was settled for $250,000 in damages.
- In February 2018, Michael Siegel was sanctioned by the New Jersey Bureau of Securities. The findings in this matter state that Michael Siegel engaged in dishonest or unethical business practices and that he willfully violated securities law. Due to these alleged actions, he was fined $100,000.
- In February 2018, a customer alleged that Michael Siegel made material misrepresentations, engaged in unauthorized trading, and recommended unsuitable securities. This case is currently pending. The customer is seeking $70,875 in damages.
Non-Traded Real Estate Investment Trusts, also known as non-traded REITs, are privately traded securities. They are not registered with the Securities and Exchange Commission and do not trade on any public securities exchanges. Because of this, there is a great potential for oversight when dealing in these products. Many securities brokers, like Michael Siegel, use this potential for oversight to their advantage when trying to get investors to purchase them. This is because it gives them the opportunity to misrepresent these products as good investments.
The truth is that non-traded REITs are highly speculative and illiquid securities that are only suitable for a select group of “accredited” investors. Despite this, many securities brokers continue to push these products unto unsuspecting investors who do not qualify as “accredited.” This is because they receive excessively high commissions as high as 8 percent when trading these products. When an investor’s principal investment is lowered this significantly, it becomes almost impossible for them to see a profit under anything besides booming market conditions.
Churning is a deceptive trading practice instituted by securities brokers like Michael Siegel. It centers around the securities broker trading a customer’s account excessively even if it has no financial benefit to the investor. The reason they do it then is because it generates additional commissions for each trade they execute. Despite its fraudulent nature, many securities brokers continue to engage 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 could 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 Siegel, please contact Oakes & Fosher for a free and private consultation.