Michael Seymour Suspended by FINRA Following Alleged Failure to Supervise
Michael Seymour (CRD #: 1597042), a broker registered with Centaurus Financial, has been suspended by FINRA, according to his BrokerCheck record, accessed on November 7, 2022. Investors may have also worked with him through Ingram Advisory Services. Keep reading if you want to know more about his conduct as a broker.
On September 27, 2022, Michael Seymour consented to the entry of findings that he allegedly failed to reasonably supervise a broker’s recommendations and sales of unit investment trusts (UITs) and alternative investments from September 2016 to September 2018.
According to a Letter of Acceptance, Waiver & Consent (AWC), Michael Seymour was allegedly the manager of a Centaurus Financial branch office owned by the registered representative (“RR 1”) during the relevant time period.
Allegedly Unsuitable Investment Recommendations
The AWC alleges that RR 1 recommended 595 UIT purchases across 83 client brokerage accounts at Centaurus. He allegedly recommended and sold standard version UITs to his clients instead of fee-based UITs, causing his clients to pay unnecessary sales charges that would have been avoided with the latter.
Between October 2016 and June 2017, RR 1 allegedly also recommended two alternative investment issuers to nine Centaurus clients who entered into advisory agreements with RR 1 Advisory. He allegedly purchased these investments through Centaurus, earning the firm a 7% selling commission on each purchase, which would not have happened if he had facilitated these transactions between RR 1 Advisory and the issuers.
Alleged Failure to Supervise
The AWC alleges that, as branch manager, Michael Seymour was responsible for supervising RR 1, reviewing and processing orders, and evaluating the suitability of his recommended transactions.
Michael Seymour allegedly knew RR 1 was recommending standard version UITs and alternative investments through Centaurus, a more expensive option due to the transactional sales charges, and that he recommended higher-cost UITs to earn greater compensation.
The AWC concludes that this alleged failure to supervise violated FINRA Rules 3110(a) and (b) and 2010.
FINRA Rule 3110
FINRA Rule 3110 requires that firms establish systems of supervision to ensure their compliance with securities regulations. Firms must appoint supervisors and provide them with Written Supervisory Procedures (WSPs) to follow.
FINRA Rule 2010
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Michael Seymour consented to the following sanctions:
- $10,000 fine
- One-month suspension
- Requirement to complete 20 hours of continuing education regarding supervisory responsibilities within 90 days of acceptance of AWC
His suspension began on October 17, 2022, and will end on November 16, 2022.
You can read a copy of the AWC here.
Michael Seymour 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
- Series 6 – Investment Company Products/Variable Contracts Representative Examination
- Series 9 – General Securities Sales Supervisor – Options Module Examination
- Series 10 – General Securities Sales Supervisor – General Module Examination
- Series 24 – General Securities Principal Examination
Michael Seymour is a registered broker in 24 states and a registered investment adviser in Florida, Georgia, and Texas.
He previously worked for the following firms:
- Investors Capital Corporation (CRD#:30613)
- Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
- Linsco/Private Ledger Corporation (CRD#:6413)
- Allen & Company of Florida (CRD#:25)
- The Dreyfus Service Corporation (CRD#:231)
- Barnett Investments (CRD#:14897)
- Key Investments (CRD#:15873)
- John Hancock Distributors (CRD#:468)
- John Hancock Mutual Life Insurance Company (CRD#:5181)
- NYLIFE Securities (CRD#:5167)
- Fidelity Brokerage Services (CRD#:7784)
Kurta Law Can Help
If you worked with Michael Seymour and you have concerns about your investments, please contact us today at 877-600-0098 or firstname.lastname@example.org 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.