The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Victor Michel. According to his publicly available FINRA BrokerCheck report, Victor Michel has been the subject of multiple customer disputes.
Victor Michel was a Nevada based securities broker. He worked in the securities industry for twenty years. During his career, he was registered with six different securities firms.
His Registrations
- M.L. Stern & Co. (1995-2008)
- Southwest Securities (2008-2010)
- Stockcross Financial Services (2010-2011)
- Torrey Pines Securities (2011)
- Financial West Group (2011-2012, 2014-2016)
- Securities America (2012-2014)
The Allegations
- In May 2001, a customer alleged that he incurred losses in his account due to Victor Michel’s excessive trading. This case was settled for $50,000 in damages.
- In August 2001, a customer alleged that Victor Michel traded his account without authorization and recommended unsuitable investments. This case was settled for $14,876 in damages.
- Later in August 2001, a customer alleged that Victor Michel excessively traded securities in their account. This case was settled for $30,000 in damages.
- In February 2006, a customer alleged that Victor Michel purchased a security that was unauthorized and unsuitable given her time horizon and risk tolerance. This case was settled for $8,967 in damages.
- In June 2016, a customer alleged that Victor Michel churned their account, made unsuitable recommendations, engaged in unauthorized trading, and ignored their previously stated investment objectives & risk tolerance. This case was settled for $55,000 in damages.
- In November 2017, Victor Michel was officially sanctioned by FINRA. This was due to allegations that he refused to appear for FINRA testimony during an investigation into his alleged sales practice violations. Due to these allegations, he was barred by FINRA from acting as a securities broker in any fashion.
What is Churning?
Brokers make their money in a few different ways. One way is by charging their customers a flat fee that is determined by the value of the account. The other method is by receiving a percentage of the customer’s principal investment every time they execute a transaction on their behalf. This commission based compensation system can easily lead to a fraudulent trading practice known as churning. This occurs when a less than scrupulous securities broker excessively trades a customer’s account with the express purpose of increasing their own commissions. Churning can be detrimental to investors due to how much the excessive commissions can deteriorate their principal investment.
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 Victor Michel, 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.
