Larry Michaels Sanctioned, Involved In Investor Complaints

Investors might have sustained losses due to Larry Joseph Michaels [CRD: 4351477, Orange, California], and FINRA sanctioned the securities broker, according to disclosures on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Evidently, Larry Michaels has been registered with Crown Capital Securities L.P. since October 16, 2012. Continue reading to learn more about the disclosures linked to Michaels’ conduct in the finance industry.

Regulatory Sanction Of Michaels For Discretionary Trading And Outside Business Activities

On April 18, 2024, FINRA issued Case No. 2020069057401, where Michaels was fined $10,000 and received a two-month suspension as a securities broker for exercising discretionary authority without written consent from his clients. Notably, Crown Capital Securities L.P. had policies against such practices in brokerage accounts, which Michaels violated.

Supposedly, Michaels also failed to fully disclose the extent of his involvement in an outside business activity (OBA). Initially, he reported his role as an owner of an accounting business, approved by his firm, but his activities went beyond the disclosed scope. Allegedly, he provided additional services that included acting as a consultant and manager, helping some clients—who were also brokerage clients of his firm—in growing and managing their businesses. Additionally, Michaels helped create several businesses for his clients, where he was a decision-maker for at least one company.

Client Complaint Against Larry Michaels Regarding Mutual Fund Redemptions

A client of Crown Capital Securities L.P. contested Larry Michaels' handling of mutual fund redemptions by filing a complaint on December 1, 2020. The client alleged that Michaels failed to inform them about redemptions of mutual fund positions, causing them to miss potential market gains. On December 16, 2020, Crown Capital Securities L.P., settled with the client for $24,300.

Investor Accused Michaels Of Breach Of Fiduciary Duty

Evidently, a Crown Capital Securities L.P. client filed FINRA Arbitration No. 14-02612 about Larry Michaels. Mainly, the client alleged unsuitable recommendations; violation of industry rules and regulations; breach of fiduciary duty; and lack of due diligence. Because of this, the client allegedly sustained damages on mutual funds and private annuity trusts. As a result, on April 13, 2016, Crown Capital Securities L.P. settled this matter by paying the client $200,000 in damages.

Did You Sustain Losses Because Of Securities Broker Larry Michaels?

Did you experience losses because of Larry Michaels? If so, reach out to Soreide Law Group online or at (888) 760-6552 and talk with a securities lawyer concerning a potential recovery of your investment losses. Soreide Law Group has recovered losses for investors across the country, works on a contingency fee basis, and advances all costs. Michaels and brokerage firms he worked for deny any allegations of sales practice violations.