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Michael Sharp Embroiled in his First Dispute in 2021

Dec 31, 2021 Investor Disputes

Michael Sharp (CRD #:2948922), a broker registered with Purshe Kaplan Sterling Investments, is involved in an unsuitability dispute, according to his BrokerCheck record, accessed on December 14, 2021. He is also a registered investment advisor with The Sharp Financial Group. 

According to the allegations filed on November 15, 2021, Michael Sharp misrepresented and recommended unsuitable investments between 2013 and 2015.  

Unsuitability and Misrepresentation 

Two types of broker misconduct that investors should be aware of are unsuitability and misrepresentation. Both involve a broker failing to act in the best interests of their client. 

What is Unsuitability? 

"Unsuitability" is a term used to describe inappropriate recommendations and trades that are inconsistent with the customer's goals and investment profile. 

Under FINRA Rule 2111, a customer's investment profile includes the following:  

  • Investor age 
  • Financial situation and needs 
  • Tax status 
  • Investment objectives 
  • Investment experience 
  • Risk tolerance 

Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration. 

What is Misrepresentation? 

Misrepresentation is a common problem in the securities industry. It usually occurs when an investment broker makes false or misleading statements about a financial product in an effort to persuade their customer to invest.  

Did you know that any of the following can be considered misrepresentation or omission? 

  • Inadequate due diligence concerning security offerings 
  • Failure to disclose all material risks 
  • Failure to disclose all transaction costs 
  • Unrealistic presumptions for investment projections 
  • Inaccurate investment performance calculation 

Misrepresentations and omissions concerning material facts in investment recommendations deprive investors of the information they need to assess risks associated with a particular investment. FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations or inducing people into buying investments with false statements about their potential benefits. This unethical conduct also violates FINRA Rule 2010, which states that brokers must uphold high standards of commercial honor.  

Losses that can be attributed to a stockbroker's material misrepresentations of facts may result in a viable securities arbitration claim for damages. 

Background Information 

Michael Sharp 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 

Michael Sharp is a registered broker in 10 states. He is also a registered investment advisor in Pennsylvania. 

Michael Sharp has also worked with the following firms: 

  • H.D. Vest Advisory Services (CRD#:104556) 
  • H.D. Vest Investment Services (CRD#:13686) 

Kurta Law Can Help 

If you have worked with Michael Sharp 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.