MICHAEL MCDERMOTT Suspended by FINRA

MICHAEL MCDERMOTT (MICHAEL MC DERMOTT SR, CRD#: 2745406) has been suspended by the Financial Industry Regulatory Authority (FINRA) for allegedly trading in a client’s account without authorization and was unaware that the customer had died. McDermott was formerly with Wells Fargo Clearing Services, LLC in Mobile, Alabama.  The suspension is in effect from 4/4/2022 to 7/3/2022.
According to FINRA’s Acceptance, Waiver & Consent (AWC), without admitting or denying FINRA's findings, MICHAEL MCDERMOTT consented to the sanction and to the entry of findings that he allegedly traded without authorization in a customer’s account, both before and after the customer’s death.
FINRA’s findings stated that MICHAEL MCDERMOTT placed a trade in his customer’s account without first obtaining the customer’s authorization. The account was fee-based and thus McDermott earned no commission.
According to the FINRA report, unaware that the customer had died, MICHAEL MCDERMOTT allegedly placed multiple stop loss orders in the customer’s account, several of which were later cancelled and three of which were later executed.
FINRA’s findings also alleged that MICHAEL MCDERMOTT entered a note in his member firm’s electronic customer note system falsely indicating that he had spoken with the customer in connection with the stop loss orders. FINRA stated that this was not possible as the customer had died prior to McDermott placing the stop loss orders. According to FINRA, after learning of the customer’s death, McDermott allegedly edited the original note to inaccurately state that he had spoken with the customer prior to the customer’s death.  McDermott caused his member firm to maintain inaccurate books and records.
According to FINRA’s BrokerCheck, available on FINRA’s website, MICHAEL MCDERMOTT has been in the securities industry for 23 years and has 2 disclosures on his FINRA CRD report.  One is the "Regulatory" suspending him for three months and the other is an “Employment Separation After Allegations,” dated March 10, 2020, from Wells Fargo Clearing Services, LLC, following the allegations of, “Wells Fargo Clearing Services, ("WFCS") registered employee was discharged by the Firm after internal review revealed that advisor entered stop loss orders in account of deceased customer, per prior discussion, not knowing customer was deceased.”
McDermott has been listed with 4 firms, the most recent listed below:
01/24/2014 - 04/08/2020    Wells Fargo Clearing Services, LLC  -  Mobile, AL 
If you’ve experienced financial losses due to the actions or recommendations of broker/investment advisor, MICHAEL MCDERMOTT formerly with Wells Fargo Clearing Services, LLC of Mobile, AL, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552. 
Soreide Law Group works on a contingency fee basis, no fee to you if no recovery. We represent clients nationwide before FINRA.