Jeffrey Stephen Geraci, a broker formerly with Newport News, Virginia based MICG Investment Management, LLC, was sanctioned by the Financial Industry Regulatory Authority (FINRA) based on findings that Mr. Geraci made an unsuitable recommendation to a customer in that a bond offering’s high-risk, speculative nature was fundamentally inconsistent with the customer’s profile and the remainder of her portfolio. FINRA stated that the bond, a Series A 9% Convertible Note issued by MICG Wealth Management, was illiquid and left the customer without the ability to sell if she needed funds. FINRA also stated that Mr. Geraci ignored red flags visible in the circumstances regarding the offering; and although he read the PPM, he failed to heed its warnings of risk. Mr. Geraci, of Virginia Beach, Virginia, was suspended from association with any FINRA member in any capacity for two business days and ordered to pay $50,000, plus interest, in restitution to a customer. The suspension was in effect from March 18, 2013 through March 19, 2013.
Broker-dealers must establish and implement a reasonable supervisory system to protect customers from broker misconduct. If broker-dealers do not establish and implement a reasonable supervisory system, they may be liable to investors for damages flowing from the misconduct. As a result, investors who have suffered damages can bring forth claims to recover losses against broker-dealers like MICG Investment Management, which should have prevented the above described illegal activity. Have you suffered losses in your MICG Investment Management, LLC account due to broker misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over , Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
Robert Wayne Pearce
Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $125 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.
Rate this Post
Loading...