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Michael Blumer Named in Dispute Alleging Unauthorized Trading

May 3, 2023 Excessive Trading

Michael Blumer (CRD #: 4861312), a broker registered with Spartan Capital Securities, is named in a pending investor dispute, according to his BrokerCheck record, accessed on April 25, 2023. Read on if you want to know more about his alleged conduct as a broker.

Pending Dispute

On March 23, 2023, 36 investors filed a dispute naming SW Financial and Michael Blumer in allegations of unauthorized trading, excessive trading, and excessive commissions, violation of the suitability rule, and negligence. They seek $117,150 in damages in this pending dispute.

FINRA Rule 3260

Unauthorized trading violates FINRA Rule 3260, which limits brokers to engaging in discretionary trading only in pre-authorized accounts. These accounts must be approved for discretionary trading by both the client and the firm.

FINRA Rule 2111

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

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

What qualifies as broker negligence?

Brokers may act in many negligent ways, including by recommending unsuitable investments, executing unauthorized trades, or failing to supervise other brokers.

Investors who have lost money through broker negligence may be able to recover their funds by pursuing FINRA arbitration.

Background Information

Michael Blumer has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination

Michael Blumer is a registered broker in 24 states.

He has also worked for the following firms:

  • SW Financial (CRD#:145012)
  • Woodstock Financial Group (CRD#:38095)
  • First Standard Financial Company (CRD#:168340)
  • Southeast Investments, N.C. (CRD#:43035)
  • Joseph Gunnar & Company (CRD#:24795)
  • Brookstone Securities (CRD#:13366)
  • J.P. Turner & Company (CRD#:43177)
  • Assent (CRD#:104162)
  • E*Trade Securities (CRD#:29106)
  • Maxim Group (CRD#:120708)
  • Joseph Stevens & Company (CRD#:35459)

Kurta Law Can Help

If you worked with Michael Blumer 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.