Michael Ferrera Suspended by FINRA Following Allegedly Failing to Disclose OBA

Michael Ferrera (CRD #: 4865324), a broker formerly registered with SagePoint Financial, has been suspended by FINRA, according to his BrokerCheck record, accessed on October 21, 2022. If you want to know more about his conduct as a broker, read on.

Suspension by FINRA

On September 1, 2022, Michael Ferrera consented to the entry of findings that he allegedly failed to provide written notice to his firm, SagePoint Financial, before engaging in an outside business activity.

A Letter of Acceptance, Waiver & Consent (AWC) alleges that Michael Ferrera began engaging in this business activity in July 2019. He allegedly provided “estate-management” services to a recently-widowed, 83-year-old client, including maintenance of her home and lawn, personal organization, and “concierge services.” Michael Ferrera allegedly charged the client $20,000 for five years of his services, paid upfront by check.

The client’s bank allegedly investigated this transaction shortly after Michael Ferrera deposited the check and reversed the transaction, leading the client to complain to SagePoint Financial and FINRA.

The AWC alleges that Michael Ferrera gave false and misleading answers during both investigations, suggesting that he had an established estate management business when this client was his first and only customer of that kind.

The AWC concludes that these allegations constitute violations of FINRA Rules 3270 and 2010.

FINRA Rules 3270 and 2010

FINRA Rule 3270 requires brokers to provide their firm with written notice of any business activities they engage in outside it, including any compensation they expect to receive.

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

Michael Ferrera consented to the following sanctions:

• $15,000 fine
• 2-year suspension

His suspension began on September 6, 2022, and will end on September 5, 2024.

You can read the full AWC here.

Resignation from SagePoint Financial

On March 9, 2020, Michael Ferrera was permitted to resign from SagePoint Financial after allegedly failing to adequately disclose an outside business activity.

Background Information

Michael Ferrera 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
• Series 6 – Investment Company Products/Variable Contracts Representative Examination
• Series 24 – General Securities Principal Examination

He previously worked for the following firms:

• Independent Financial Group (CRD#:7717)
• SagePoint Financial (CRD#:133763)
• SunAmerica Securities (CRD#:20068)

Kurta Law Can Help

If you worked with Michael Ferrera 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 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.