Soreide Law Group is investigating possible investor claims against securities broker Michael Girard Deluca (also known as Mike Deluca) (CRD: 4428054, Beaver Falls, Pennsylvania). Evidently, FINRA sanctioned the securities broker, who worked for Fortune Financial Services Inc. Allegedly, Deluca failed to supervise. Here is a brief summary of FINRA’s allegations against Deluca.
Particularly, on December 6, 2022, FINRA issued Acceptance, Waiver, and Consent No. 2020065435402 sanctioning Michael Deluca for infractions. Specifically, Deluca was suspended as a principal and fined $5,000. Evidently, FINRA alleged that Deluca failed to supervise.
Without admitting or denying the findings, DeLuca agreed to the penalties and accepting the findings that while working for Fortune Financial Services Inc., he did not adequately oversee variable annuity exchanges and surrenders recommended by a representative. This was due to his failure to respond appropriately to warning signs. This includes signs of many of the representative's applications containing false information.
The findings indicated that DeLuca's responsibilities included reviewing and approving variable annuity exchanges that did not disclose a surrender charge. The applications contained details about the purchase date, surrender period, and exchange amount that contradicted the representative's claims of no surrender charge. DeLuca was also aware that during the surrender period, investors were only allowed to withdraw a specific percentage of the contract amount.
However, in one instance, an exchange application revealed that a client wanted to exchange 64% of the contract value during the surrender period, while the allowable withdrawal percentage was capped at 10% of the contract value. DeLuca did not question or investigate the representative's statement on the application that the client would not face a surrender charge.
Additionally, DeLuca failed to compare the information on the documents with other sources like the original applications, surrender fee schedules, or the clients' most recent account statements. Consequently, he failed to identify the misrepresentation made by the representative regarding the absence of a surrender charge for the client. As a result of these transactions, clients incurred surrender charges amounting to $71,386.94.
Evidently, on May 12, 2006, a USA Financial Securities Corporation client filed a complaint about Michael Deluca. Namely, the client alleged that Deluca made unsuitable recommendations. Because of this, the client allegedly sustained damages on fixed annuities. Therefore, the client requested $33,000 in compensation from USA Financial Securities Corporation or Deluca. However, the client closed this dispute without resolving it.
Have you incurred damages by investing with Michael Deluca? If so, get in touch with Soreide Law Group at (888) 760-6552 and speak with a securities attorney about a possible recovery of your losses. Soreide Law Group, who has successfully recovered money for hundreds of investors across the United States, represents clients on a contingency fee basis and advances all costs. Deluca and brokerage firms Deluca worked for deny any allegations of sales practice violations.
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