Michael McDermott Suspended by FINRA
Michael McDermott (CRD #: 2745406), formerly of Wells Fargo, has been suspended by FINRA, according to his BrokerCheck record, accessed on May 2, 2022. If you want to know more about Michael McDermott’s conduct as a broker, keep reading.
Suspension by FINRA
In a regulatory action filed on March 28, 2022, Michael McDermott consented to findings that he allegedly executed unauthorized trades in a client’s account before and after their death and falsified records.
The Acceptance, Waiver, and Consent (AWC) agreement alleges Michael McDermott placed an unauthorized trade in the client’s account in January 2019. According to the filing, Michael McDermott was unaware of his client’s death in March when he placed multiple stop-loss orders in the client’s accounts in April. Several of these orders were later canceled, according to the AWC, but three were executed.
Further, the AWC alleges that on April 8, 2019, Michael McDermott entered an inaccurate note into the Wells Fargo Clearing Services electronic customer note system claiming that he had spoken to his already-deceased client about the stop-loss orders. This is not possible, since his client died in March. He allegedly edited this note on May 15, 2019, to state that this conversation happened in January.
According to the AWC, these allegations constitute violations of FINRA Rules 4511 and 2010.
FINRA Rules 4511 and 2010
FINRA Rule 4511 requires firms to maintain accurate books and records, and FINRA Rule 2010 states that brokers must follow high standards of commercial honor.
Sanctions
Following the filing of this action, Michael McDermott consented to a three-month suspension from associating with FINRA members. The suspension began on April 4, 2022, and will end on July 3, 2022.
You can read the full AWC here.
Employment Termination
Wells Fargo fired Michael McDermott following his allegedly unauthorized stop-loss orders.
Background Information
Michael McDermott 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 31 – Futures Managed Funds Examination
- Series 7 – General Securities Representative Examination
- Series 10 – General Securities Sales Supervisor – General Module Examination
- Series 9 – General Securities Sales Supervisor – Options Module Examination
He has also worked for the following firms:
- Wells Fargo Clearing Services (CRD#:19616)
- Morgan Stanley (CRD#:149777)
- Morgan Stanley & Company (CRD#:8209)
- Morgan Stanley DW (CRD#:7556)
Kurta Law Can Help
If you have worked with Michael McDermott and have concerns about your investments, don’t hesitate to contact us today 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.’
Loading...
Reload document 
Open in new tab