Michigan Broker Barred by FINRA for Participating in Private Securities Transactions Involving Outside Businesses

Michael Willard Korson (CRD #2108802, Novi, Michigan)

was barred by FINRA for allegedly failing to timely and accurately notify his member firm of his outside business activities. Although Korson eventually provided notice to his firm and revealed that he received compensation from the outside business, he falsely stated when his involvement first began.

FINRA's findings stated that Korson participated in private securities transactions, involving his outside business, with the sale of convertible debentures to firm clients and preferred stock to a non-client, without providing prior written notice to his firm and another member firm. Upon registering with one of the firms, Korson disclosed the business as an outside business activity, but then failed to provide prior written notice to the firm of an investment by the non-client in the outside business.

Also, FINRA's findings stated that Korson misused his outside business’ investor funds by charging personal expenses to his outside business’ corporate credit card. FINRA's findings also included that Korson’s wife opened a brokerage account in the name of the outside business away from his firm. Korson traded in the outside brokerage account without disclosing the opening of the account to his firm or disclosing his registration with his firm to the member firm where the account was opened. Instead, Korson falsely certified to his firm that he had disclosed all brokerage accounts held away from the firm.
(FINRA Case #2013036033801)

Michael Willard Korson, according to FINRA's BrokerCheck, was previously registered with the following firms:

01/2014 - 07/2014 HBW SECURITIES LLC (CRD# 136959) - SOUTH LYON, MI
04/1991 - 02/2013 PFS INVESTMENTS INC. (CRD# 10111) - WIXOM, MI

This summation of information obtained from FINRA’s website "Disciplinary and Other FINRA Actions, April 2015," ends here.

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