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Investor Claims Michael Wagner’s Unsuitable Investment Strategy Led to $15 Million Loss

Jan 25, 2022 Investor Disputes

Michael Wagner (CRD #:4465334), a broker and investment advisor registered with Morgan Stanley, is involved in an unsuitability dispute, according to his BrokerCheck record accessed on January 10, 2022. This is Michael Wagner's third unsuitability dispute. 

According to the allegations filed on November 1, 2021, Michael Wagner employed an unsuitable options investment strategy. The investor is seeking $15,708,558 — the case is still pending. Options trading is risky and suitable only for investors who can afford losses. 

Misrepresentation Allegations 

Michael Wagner has been involved in two other unsuitability disputes, each alleging misrepresentation. 

According to allegations filed on August 16, 2021, Michael Wagner misrepresented a stock option strategy implemented in his client's account. The dispute was denied, but investors should know that a denial does not necessarily mean the end of the dispute. You can still seek FINRA arbitration and recover your losses following a denial. 

According to allegations filed on November 3, 2020, Michael Wagner misrepresented an option strategy in a client's account he was managing. The investor is seeking 5,162,453 the case is still pending. 

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 to persuade their customer to invest. 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. 

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 

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 Wagner has passed the following exams: 

  • Series 66 - Uniform Combined State Law Examination 
  • SIE - Securities Industry Essentials Examination 
  • Series 7 - General Securities Representative Examination 

Michael Wagner is a registered broker in 46 states. He is also a registered investment advisor in Georgia and Texas. 

Other than Morgan Stanley, Michael Wagner has worked with: 

  • Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691) 

 Kurta Law Can Help 

If you have worked with Michael Wagner 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. Please reach out if you have any questions about what steps to take next to recover your investment losses.