Michael Young Allegedly Violated the Suitability Rule

Michael Young (CRD #: 3242751), a broker registered with Aurora Securities, is the subject of an investor dispute. This is according to his BrokerCheck record, accessed on March 8, 2024. Keep reading if you have questions regarding his conduct. 

Investor Dispute 

On February 15, 2024, an investor alleged that Michael Young engaged in negligence and violations of the North Dakota Securities Act. They further alleged violations of the suitability rule and misrepresentation. 

The investor is seeking $130,000. 

FINRA Rule 2111 

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals.

Some common violations of this rule include:

• Excessive trading, which violates the need for quantitative suitability. This means that the number of trades must suit an investor’s goals. Excessive trading is also known as “churning.” 
• Recommendations of unsuitable investment strategies. For instance, overconcentration of securities in a certain stock or sector is typically unsuitable due to the degree of risk.
• Recommendations of high-risk or illiquid investments. These investments may lead to high fees for the investor.

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

FINRA Rule 2020 – Misrepresentation

FINRA Rule 2020 prohibits the misrepresentation of investments and omission of material facts. Material facts include information about an investment’s potential returns, as well as charges, expenses, and fees.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade. Violations of FINRA Rule 2111 and FINRA Rule 2020 also violate this rule. 

Background Information 

Michael Young has passed the following exams: 

• Series 66 Uniform Combined State Law Examination 
• Series 63 Uniform Securities Agent State Law Examination 
• Series 99TO Operations Professional Examination 
• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination
• Series 14 Compliance Officer Examination 
• Series 51 Municipal Fund Securities Principal Examination 
• Series 24 General Securities Principal Examination 

He is a registered broker in 21 states and is a registered investment adviser in North Dakota and Texas. 

During his 24 years of experience, Michael Young has registered with eight firms: 

• Aurora Securities (CRD #: 46147) 
• Classic (CRD #: 159357) 
• Secure Asset Management (CRD #: 144046) 
• Classic Asset Management (CRD #: 122030) 
• Northstar Financial Partners (CRD #: 107708) 
• Fintegra (CRD #: 16741) 
• Questar Capital Corporation (CRD #: 43100) 
• Multi-Financial Securities Corporation  (CRD #: 10299) 

Kurta Law Can Help 

If you have worked with Michael Young and have concerns about your investments, do not hesitate to contact us 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 that 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. Do not let securities fraud go unchecked. Start your recovery process today.