Michael Shonsey Allegedly Overconcentrated Investors in Unsuitable Investments

Michael Shonsey (CRD #: 422524), a broker registered with Brokers International Financial Services, allegedly recommended unsuitable investments, according to his BrokerCheck record, accessed on May 16, 2023. Investors may have also engaged his services through Brokers Financial. If you have questions about his alleged conduct as a broker, keep reading.

Investor Dispute

On February 2, 2023, multiple investors filed a dispute alleging that Michael Shonsey made unsuitable investment recommendations and overconcentrated them in these investments. This dispute is currently pending.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles. These profiles contain information such as investors’ tax status, risk tolerance, and financial goals.

Investment strategies must also serve investors’ goals. Overconcentration in a single sector or stock is often an unsuitable investment strategy due to the high degree of risk involved.

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

Background Information

Michael Shonsey has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 5 – Interest Rate Options Examination
• PC – AMEX Put and Call Exam
• Series 7 – General Securities Representative Examination
• Series 1 – Registered Representative Examination
• Series 10 – General Securities Sales Supervisor – General Module Examination
• Series 9 – General Securities Sales Supervisor – Options Module Examination
• Series 24 – General Securities Principal Examination
• Series 4 – Registered Options Principal Examination
• Series 12 – NYSE Branch Manager Examination

Michael Shonsey is a registered broker in Iowa, Missouri, Nebraska, North Dakota, and Texas. He is also a registered investment adviser in Nebraska and Texas.

He has also worked for the following firms:

• LPL Financial (CRD#:6413)
• Cetera Advisors (CRD#:10299)
• Securities America Advisors (CRD#:110518)
• Securities America (CRD#:10205)
• GWR Investments (CRD#:25312)
• Morgan Stanley DW (CRD#:7556)
• Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
• Piper, Jaffray & Hopwood (CRD#:665)
• Reinholdt & Gardner (CRD#:709)     
• Dain, Kalman & Quail (CRD#:202)
• St. Paul Investors (CRD#:421)
• Industry Savings Plans (CRD#:425)

Kurta Law Can Help

If you worked with Michael Shonsey and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com 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.