Securities Fraud Lawyer Blog
On May 15, 2017 the Corporation Commissioner for the state of Arizona, acting through the Securities Division filed a complaint seeking a cease and desist order, and the revocation of securities licensing against Michael Crowe, a registered representative formerly registered with Securities America and FSC Securities Corporation. The Corporation Commissioner is seeking the revocation of Crowe’s license as a result of his participation in an unapproved securities transaction made while Crowe was registered with Securities America.
The Securities Divisions’ complaint stems from an investigation into Crowe’s role in a securities transaction made with Simply Smart Homes, a company run by Richard Smart. Smart purported to have an expertise in buying, fixing up, then “flipping” homes, and was looking for investors to fund his operations. Smart and his company was previously the subject of a separate action brought by the Commissioner.
According to the complaint Crowe introduced a client to Smart, who was touting eight to ten percent returns for an investment in his company. Crowe was paid $2,500 as a finder’s fee/commission for these services. Several months later, in August, 2016, Crowe’s employer, Securities America discovered the transaction and terminated Crowe for engaging in private securities transactions without obtaining prior approval from the firm.
The Arizona Corporation Commissioner’s action seeks the revocation of Michael Crowe’s license, administrative penalties and a fine of up to $5,000.
Michael Crowe’s registration and disciplinary history
In order to lawfully sell investments to the public, one must either be licensed or exempt from licensing. Michael Crowe has not held a license with a FINRA approved firm since September, 2016.
According to FINRA’s CRD disclosure report, Michael Crowe has been the subject of four customer complaints and one regulatory investigation.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery. For the past 23 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via fraudulent and unsuitable investment transactions. During that time we have recovered money for over one thousand individuals, pension plans, trusts and companies. The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $40,000,000.
When investors contact our firm they can expect prompt attention, and a detailed analysis of their issues. Typical claims that we are asked to review involve “unsuitability (where a financial advisor makes investment recommendations that are inconsistent with a customer’s investment objectives), claims for “churning” (where a broker enters into an excessive number of trades for the purpose of generating commissions), claims involving illiquid investments such as private placements (I.e., real estate investment trusts, limited partnerships, equipment leasing and oil and gas drilling programs) as well as claims for violations of state securities laws, which often provide investors remedies like attorney’s fees and interest, if they are successful on the claim.
FINRA’s rules require that all investment recommendations made by licensed financial advisors be suitable in light of a customer’s needs, objectives and risk tolerance. In addition, all registered representatives are required to be properly supervised, with periodic inspections and reviews by qualified supervisors, whose job it is to vigorously investigate suspicions of wrongdoing (red flags).
If you suspect that you have been the victim of investment fraud, or had a financial advisor recommend unsuitable investments to you, call us today for a free, confidential consultation at (702) 380-3131.