Archibald McMichael Involved in an Alternative Investment Dispute

Archibald McMichael (CRD #: 2997111), a broker registered with Avantax Investment Services, is the subject of negligence allegations. This is according to his BrokerCheck record, accessed on August 14, 2023. Keep reading if you have questions regarding his conduct as a broker. 

On June 27, 2023, an investor alleged that Archibald McMichael was negligent when he recommended an alternative investment. The issuer of the alternative investment has since filed for bankruptcy. Alternative investments are too high-risk for many investors. The investor further alleges that Archibald McMichael did not perform his due diligence and violated Pennsylvania Unfair Trade Practices and Consumer Protection Law. The investor is seeking $105,000 in this pending dispute. 

FINRA Rule 2111 

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals.

Some common violations of this rule include:

• Excessive trading, which violates the need for quantitative suitability. This means that overall trading activity must also suit an investor’s goals.
• Recommendations of unsuitable investment strategies. For instance, overconcentration of securities in a certain stock or sector is typically unsuitable due to the degree of risk.
• Recommendations of high-risk or illiquid investments. These investments may lead to losses or high fees for the investor.

Investors who rely on brokers for recommendations may be able to recover their losses by pursuing FINRA arbitration.

What is Broker Negligence? 

Negligence covers a variety of broker misconduct, including a failure to conduct due diligence. Investors who believe their losses are the result of broker negligence may be able to recover their funds by pursuing FINRA arbitration. 

Background Information 

Archibald McMichael has passed the following exams: 

• Series 65 Uniform Investment Adviser Law Examination 
• Series 63 Uniform Securities Agent State Law Examination 
• Series 82TO Limited Representative-Private Securities Offerings 
• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination 
• Series 6 Investment Company Products/ Variable Contracts Representative Examination 
• Series 24 General Securities Principal Examination 

He is a registered broker in six states and is a registered investment adviser in Pennsylvania. 

Archibald McMichael has registered with the following firms: 

• Avantax Investment Services (CRD #: 13686) 
• Avantax Advisory Services (CRD #: 104556) 
• Lifemark Securities Group (CRD #: 16204) 
• LPL Financial (CRD #: 6413) 
• PNC Investments (CRD #: 129052) 
• J.B. Hanauer (CRD #: 6958) 
• Morgan Stanley DW Inc. (CRD #: 7556) 
• Vanguard Marketing Corporation (CRD #: 7452) 

Kurta Law Can Help

If you worked with Archibald McMichael and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.