Michael DeRosa Suspended by SEC

Michael DeRosa (CRD #: 2013453), a broker formerly registered with Fox Chase Capital Partners, has been suspended by the SEC, according to his BrokerCheck record, accessed on March 26, 2025. Read on to learn more alleged conduct as a broker.

SEC Suspension

On February 14, 2025, the Securities and Exchange Commission filed a regulatory action against investment advisory firm One Oak Capital Management, LLC and Michael DeRosa, alleging that they failed to sufficiently disclose advisory fees to certain clients who converted their brokerage accounts at a broker-dealer to advisory accounts (“converted accounts”) at One Oak Capital Management.

While the converted accounts were allegedly previously only charged brokerage commissions, the SEC alleged that Michael DeRosa and One Oak Capital Management charged the converted accounts advisory fees based on a percentage of the assets managed by the firm. This allegedly represented a significant increase in account expenses for clients.

The SEC further alleged that Michael DeRosa and One Oak Capital Management put their financial interests ahead of their potential clients’ by recommending these conversions, and also failed to have a reasonable basis to believe that these conversions were in their clients’ best interests given the information in their investment profiles.

One Oak Capital Management allegedly also had compliance issues related to the converted accounts and failed to provide a Form ADV at the time of account opening for many of these accounts.

The SEC alleged that Michael DeRosa violated Section 206(2) of the Investment Advisers Act of 1940 and that One Oak Capital Management violated Sections 204, 206(2), and 206(4) and Rules 204-3 and 206(4)-7 thereunder of the Investment Advisers Act.

Investment Advisers Act of 1940

Section 204 of the Investment Advisers Act describes the books and records required to be maintained by investment advisers.

Section 206 prohibits the use of deceptive, manipulative, and otherwise fraudulent schemes and practices by investment advisers.

Rule 204-3 requires investment advisers to provide current and prospective clients with a brochure that contains the information required by Part 2 of Form ADV.

Rule 206(4)-7 requires investment advisers to establish and enforce policies and procedures to prevent violation of the Investment Advisers Act, conduct annual reviews of these policies and procedures, and appoint a chief compliance officer.

Sanctions

The SEC suspended Michael DeRosa from associating with the following:

• Brokers
• Dealers
• Investment advisers
• Municipal securities dealers
• Municipal advisors
• Transfer agents
• Nationally recognized statistical rating organizations (NRSROs)

His suspension began on February 14, 2025, and will end on November 14, 2025.

Resignation from One Oak Capital Management

On December 31, 2024, Michael DeRosa was permitted to resign from One Oak Capital Management following allegations that he failed to adequately disclose advisory fees associated with advisory accounts converted from brokerage accounts held at an unaffiliated broker-dealer.

Background Information

Michael DeRosa has passed the following exams:

• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Uniform Investment Adviser Law Examination – Series 65
• Uniform Securities Agent State Law Examination – Series 63

In the past, he has worked for the following firms:

• Fox Chase Capital Partners (CRD#:104087)
• ProEquities (CRD#:15708)
• Advantage Capital Corporation (CRD#:146)
• Robert Thomas Securities (CRD#:10147)

Kurta Law Can Help

If you worked with Michael DeRosa 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.