Did Michael Dandrea Execute an Excessive Number of Transactions?

Michael Dandrea (CRD #: 5919930), a broker registered with Sovereign Global Advisors, is the subject of an investor dispute, according to his BrokerCheck record, accessed on December 6, 2023. Details concerning the dispute are provided below. 

On September 19, 2023, an investor alleged that Michael Dandrea breached his contract and engaged in churning, fraud, and negligence. They further alleged unauthorized and unsuitable trading. 

The investor is seeking $100,000. 

What is Excessive Trading, or “Churning”? 

FINRA Rule 2111, a.k.a. The Suitability Rule, requires brokers to tailor their investment recommendations to suit investors’ needs. Each trade comes with a transaction fee, so too many transactions will result in excessive fees for the investor. Excessive trading is also known as “churning.” 

Rule 2111 also requires brokers to consider the following investor characteristics: 

• Age
• Risk tolerance
• Time horizon (i.e., how long the investor plans to hold the investment)
• Investing experience
• Tax status
• Financial goals

Investments that do not fit the criteria established by the investor profile may be unsuitable. Investors who rely on brokers for recommendations may recover their losses by pursuing FINRA arbitration.

FINRA Rule 3260 – Unauthorized Trading 

Unauthorized trading violates FINRA Rule 3260, which limits brokers to exercising their trading discretion in pre-approved discretionary accounts.

Background Information 

Michael Dandrea has passed the following exams: 

• Series 66 Uniform Combined State Law Examination
• Series 63 Uniform Securities Agent State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination 

He is a registered broker in 29 states and is a registered investment adviser in New Jersey. 

During his 12 years of experience, he has registered with four firms: 

• Sovereign Global Advisors (CRD #: 167663) 
• National Asset Management (CRD #: 115927) 
• National Securities Corporation (CRD #: 7569) 
• Trident Partners (CRD #: 41258) 

Kurta Law Can Help 

If you have worked with Michael Dandrea and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors 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. Do not let securities fraud go unchecked. Start your recovery process today.