The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Michael Sims. According to his publicly available FINRA BrokerCheck report, Michael Sims has been the subject of multiple customer disputes.
Michael Sims was a California based securities broker. He worked in the securities industry for thirty-seven years. During his career, he was registered with five different securities firms.
His Registrations
- Merrill Lynch (1982-1984)
- E.F. Hutton & Company (1984-1988)
- Lehman Brothers (1988-1993)
- Citigroup Global Markets (1993-2005)
- Wedbush Securities (2005-2019)
The Allegations
- In June 2008, a customer alleged that Michael Sims recommended unsuitable securities, charged them excessive commissions, and executed excessive trades. This case was settled for $10,000 in damages.
- In January 2019, an attorney, on behalf of customers, alleged that Michael Sims recommended unsuitable securities, breached his fiduciary duty, handled their account negligently, made negligent misrepresentations, breached contract, made material omissions and misrepresentations, engaged in fraudulent concealment, violated federal statutes, violated California laws and FINRA rules. This case was settled for $702,600 in damages.
- In August 2019, a customer alleged that Michael Sims excessively traded their account, recommended inappropriate investments, mismanaged their account, and charged them excessive commissions. This case is currently pending. The customer is seeking $250,000 in damages.
What Does This Mean?
Most investors lack the investment knowledge and experience to invest suitably on their own behalf. This is the reason that investors hire securities brokers in the first place, so that they can receive advice on what securities are suitable for them. One of the most important aspects of a broker’s job is to determine suitability based on factors that include the customer’s investment objectives, financial situation, age, risk tolerance, and liquidity needs. Brokers are expected to conduct the necessary due diligence that is required to determine what investments are suitable for their customers. Because of this, they are not allowed to excuse their poor advice by claiming they were unaware of an investment’s unsuitability.
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 Sims, please contact Oakes & Fosher for a free and private consultation.
