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Investor Alleges Michael Levine Purchased Unsuitable Stocks

Nov 29, 2022 Unsuitable Investments

Michael Levine (CRD #: 1785045), a broker registered with Wells Fargo Clearing Services, allegedly purchased unsuitable investments for a client, according to his BrokerCheck record, accessed on November 19, 2022. Keep reading if you want to know more about his conduct as a broker.

Investor Dispute

On August 18, 2022, an investor alleged that, in or around 2014, Michael Levine purchased unsuitable technology stocks. This dispute is currently pending.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that adequately suit an investor’s financial goals. Brokers must consider the information in an investor’s profile, such as the investor’s risk tolerance, age, and tax status.

  • High-risk investments may be unsuitable due to their likelihood of losing money.
  • Illiquid investments can be difficult to sell in the short-term and tend to incur high fees when investors attempt to sell them too soon.
  • Excessive trading violates the need for quantitative suitability. This means that the overall number of trades executed must also be suitable for the client’s financial goals.
  • Investment strategies are also required to be suitable for the investor. For example, the level of risk involved in overconcentration of securities in a certain sector or stock may be unsuitable for some investors.

Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.

Background Information

Michael Levine has passed the following exams:

  • Series 65 – Uniform Investment Adviser Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 6 – Investment Company Products/Variable Contracts Representative Examination

Michael Levine is a registered broker in 27 states and the District of Columbia. He is also a registered investment adviser in New Jersey and Texas.

He has also worked for the following firms:

  • A. G. Edwards & Sons (CRD#:4)
  • Salomon Smith Barney (CRD#:7059)
  • Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
  • First American National Securities (CRD#:10111)

Kurta Law Can Help

If you worked with Michael Levine and you have concerns about your investments, please contact us today at 877-600-0098 or 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 and 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.