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Michael Russo Involved in Two Investor Disputes in 2021

Feb 15, 2022 Unauthorized Trading

Michael Russo (CRD #: 3072489), a broker registered with Spartan Capital Securities, is involved in two pending investor disputes, according to his BrokerCheck record, accessed on February 3, 2022. 

Investor Allegations

  1. On October 15, 2021, Michael Russo was named in an investor dispute alleging unsuitability and unauthorized trading for trading activity in 2014 - 2015. The investor is seeking $49,000.
  2. On January 11, 2021, Michael Russo was involved in an investor dispute alleging over-concentration, unsuitability, and excessive trading. The investor is seeking $41,916.

Civil Liens

Between 2016 and 2020, Michael Russo was the subject of six civil liens amounting to approximately $105, 554.

FINRA Suspension and Fine

According to an Acceptance, Waiver, and Consent agreement dated April 29, 2016, Michael Russo communicated with the public about his securities business using hundreds of personal emails and text messages.

The findings further state that Michael Russo sent emails containing false, exaggerated, unwarranted, or misleading statements, contained inappropriate performance predictions, and failed to provide the investor with a sound basis for evaluating the investment or service. The findings also state that he did so even though his member firm's written procedures required him to utilize its email system when sending or receiving business-related Emails and text messages. 

FINRA Rule 2210 outlines requirements for broker communications with clients. It requires that communications with the public be fair and balanced. Brokerage firms and their registered members should also provide a sound basis for evaluating the facts in regard to any particular security and should not omit material facts. 

The findings also state that Michael Russo made false statements to FINRA during an examination regarding his use of personal email and text messages to communicate about his securities business. By falsely claiming to FlNRA Staff that he did not maintain a personal email address or use text messaging to communicate with the public, He violated FINRA Rule 2010, which requires that members and their associated persons "observe high standards of commercial honor and just and equitable principles of trade." 

Sanctions

As part of the terms of the AWC, Michael Russo consented to a:  

  • One-year suspension
  • $35,000 fine

You can read a copy of the AWC here.

Employment Termination Details

On November 11, 2013, Global Arena Capital Corp fired Michael Russo after he allegedly made false, exaggerated, unwarranted, and/or misleading statements to the public; used personal email addresses in his business communications with his customers; and failed to provide truthful responses to questions posed by FINRA staff.

Background Information

Michael Russo has passed the following exams:

  • Series 63 - Uniform Securities Agent State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination

Michael Russo is a registered broker in eight states.

He has also worked with the following firms: 

  • Craft Capital Management (CRD#:171350)
  • Laidlaw & Company (UK) (CRD#:119037)
  • Prestige Financial Center (CRD#:30407)
  • W. Bach & Company (CRD#:43522)
  • Harrison Securities (CRD#:14103)
  • Ehrenkrantz King Nussbaum (CRD#:31140)
  • Weatherly Securities Corporation (CRD#:11081)
  • Tasin & Company (CRD#:30709)
  • Royce Investment Group (CRD#:10494)
  • First Asset Management (CRD#:17341)

Kurta Law Can Help

If you have worked with Michael Russo 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 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.