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Michael Witt Suspended by FINRA

Nov 8, 2022 FINRA Suspension

Michael Witt (CRD #: 4206075), a broker registered with Ameriprise Financial Services, was recently suspended by FINRA, according to his BrokerCheck record, accessed on October 22, 2022. Keep reading to learn more about his conduct as a broker.

Suspension by FINRA

On August 19, 2022, Michael Witt consented to the entry of findings that he allegedly caused his member firm, Morgan Stanley, to maintain inaccurate books and records by changing the representative code for certain trades to be inaccurate.

The AWC alleged that, from May 2016 through November 2020, Michael Witt placed 268 trades in accounts covered by this agreement using his personal representative code. Further, the AWC alleged that Michael Witt altered the correct code prepopulated by the firm’s system with his personal representative code for each of these trades and negligently failed to verify whether the accounts in question were subject to his agreement.

As a result, he allegedly received a higher percentage of commissions from these trades than was defined in his agreements and caused Morgan Stanley to keep inaccurate records.

The AWC concluded that these allegations constitute violations of FINRA Rules 4511 and 2010.

FINRA Rules 4511 and 2010

FINRA Rule 4511 requires firms to keep accurate books and records.

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

Michael Witt consented to the following sanctions:

  • $5,000 fine
  • One-month suspension

His suspension began on September 19, 2022, and ended on October 18, 2022.

You can read the full AWC here.

Suspension by State of Texas

On June 29, 2021, the State of Texas initiated regulatory action against Michael Witt.

The State of Texas alleged that, from May 2016 through November 2020, Michael Witt participated in a “sun-setting program” wherein he would service certain client accounts previously serviced by representatives no longer working at Morgan Stanley Smith Barney. Under this agreement, Michael Witt and the former representative would each receive a portion of the transaction revenue.

However, Michael Witt allegedly entered the incorrect production number for multiple trades in these accounts, leading him to receive all of the trade revenue rather than the percentage described in the agreement.

As a result of this regulatory action, Michael Witt consented to the following sanctions:

  • 30-day suspension of his license in the state of Texas
  • 6-month probation
  • $30,000 contribution to the lnvestor Education Fund of the lnvestor Protection Trust of Texas

He was suspended in all capacities as an agent and investment adviser representative in Texas from June 29 to July 29, 2021.

Discharge from Morgan Stanley Smith Barney

On January 7, 2021, Michael Witt was fired from Morgan Stanley following allegations that he submitted transactions under production numbers that were inconsistent with an agreement he made with other representatives, resulting in a shortfall of revenue being credited to other representatives.

Background Information

Michael Witt 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 3 – National Commodity Futures Examination
  • Series 7 – General Securities Representative Examination
  • Series 10 – General Securities Sales Supervisor – General Module Examination
  • Series 9 – General Securities Sales Supervisor – Options Module Examination

Michael Witt is a registered broker in 12 states and a registered investment adviser in Texas.

He has also worked for the following firms:

  • Ameriprise Financial Services (CRD#:6363)
  • Morgan Stanley (CRD#:149777)
  • Morgan Stanley & Company (CRD#:8209)
  • Morgan Stanley (CRD#:7556)

Kurta Law Can Help

If you worked with Michael Witt 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. 

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