FINRA Recommends Disciplinary Action Against Michael Norton

Michael Norton (CRD #: 2617985), a broker registered with David Lerner Associates, has been investigated by FINRA. This disclosure appears on his BrokerCheck record, accessed on December 14, 2024. Investors may have also engaged his services through Spirit of America Management Corporation. Keep reading if you have questions regarding his alleged conduct. 

FINRA Investigation

On November 18, 2024, FINRA made a preliminary decision to recommend disciplinary action be brought against Michael Norton, alleging that he recommended investments in Energy 11, LP and Energy Resources 12, LP to investors without a reasonable basis to believe they were suitable for those clients.

FINRA further alleged that Michael Norton caused his firm to maintain inaccurate books and records concerning client investment profiles.

FINRA Rule 2111 – Unsuitable Investments 

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investor profiles have information on the investor’s age, risk tolerance, tax status, investing experience, and financial goals. Investments that do not take these factors into account may be unsuitable. 

FINRA Rule 4511 – Inaccurate Books and Records

FINRA Rule 4511 requires firms to keep accurate and up-to-date books and records.

Investor Disputes 

On March 7, 2024, an investor alleged that Michael Norton misrepresented an unsuitable investment, specifically Spirit of America Energy Fund Class A. The investor is seeking $500,000. 

On September 3, 2021, an investor also alleged that Michael Norton recommended an unsuitable investment and misrepresented a security. The investor further alleged negligence. The dispute was settled for $108,408.

On August 24, 2018, an investor filed a dispute against Michael Norton alleging violation of the suitability rule. This dispute was denied by the firm.

However, investors can still seek out FINRA arbitration and potentially recover their losses even if a firm denies their dispute.

Misrepresentation 

FINRA Rule 2020 forbids the use of deceptive, manipulative, and otherwise fraudulent methods to influence the purchase and sale of securities. The misrepresentation or omission of material facts violates this rule.

High Standards of Commercial Honor 

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade. Violations of FINRA Rule 2020 and FINRA Rule 2111 also violate this rule.

Broker Negligence

Many types of broker misconduct may qualify as negligence. Common examples include failure to supervise, unsuitable investment recommendations and misrepresentations or omissions of material fact.

Investors who believe their losses are the result of broker negligence may be able to recover their funds through FINRA arbitration.

Background Information 

Michael Norton 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 7 General Securities Representative Examination 

He is a registered broker in 28 states and D.C. and is a registered investment adviser in New York. 

Michael Norton has also been registered with Meyers Pollock Robbins (CRD #: 13436)  and Marlowe & Company (CRD #: 35733).

Kurta Law Can Help 

If you have worked with Michael Norton and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email 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.