Michael Fahsholtz, Former Stifel Nicolaus Broker, Subject Of Disputes

Michael Fahsholtz (Michael Anthony Fahsholtz CRD#: 2057306) is a former broker and investment advisor who was registered with broker-dealer Stifel, Nicolaus & Company, Incorporated (CRD#:793) from 2011 until he left the brokerage industry in 2020. Fahsholtz was based in Wenatchee, Washington. Fahsholtz’s FINRA BrokerCheck Report, published by the Financial Industry Regulatory Authority (“FINRA”) indicates that he is the subject of five pending securities arbitration claims, and that three other disputes lodged against Fahsholtz have been settled.

FINRA Arbitration Claims Against Fahsholtz Pile Up Over Past Three Years

Fahsholtz is facing five pending customer disputes, all of which concern his recommendations that customers invest in corporate debt instruments and unit investment trusts (UITs). Many of the disputes contain the same allegations, including:

Fraud
Breach of contract
Breach of fiduciary duty
Negligence
Gross Negligence
Violation of the Washington Consumer Protection Act
Violation of the Securities Act of Washington
Violation of federal securities laws

These disputes, filed between April 2019 and July 2020—all concerning Fahsholtz’s conduct while registered with Stifel, Nicolaus & Company, Incorporated—each are seeking damages ranging from $90,000 to $500,000.

Stifel, Nicolaus & Company, Incorporated has Settled Securities Claims Lodged Against Fahsholtz

The “pending” disputes on Fahsholtz’s FINRA record are not the first instances of investors alleging misconduct. According to Fahsholtz’s record, Stifel has previously settled disputes concerning Fahsholtz:

In November 2020, Stifel settled a dispute concerning Fahsholtz for $14,500 – The investor alleged damages of $45,000 for “violation of the Securities Act of Washington, breach of fiduciary duty, and unsuitable investment recommendations.”
In October 2020, Stifel settled a dispute concerning Fahsholtz for $48,500 – The investor alleged damages of $240,000 for “violation of the Securities Act of Washington, breach of fiduciary duty, unsuitable investments, violation of FINRA Rule 3110, negligence and breach of contract.”

Complaints Against Michael Fahsholtz Concern “Suitability”

FINRA Rules require brokers to have “a reasonable basis to believe a recommended transaction or investment strategy involving a security or securities is suitable” based on a variety of factors, including the investor’s age, financial situation, investment objectives, risk tolerance etc. FINRA also requires brokers to “Know Your Customer” so that brokers learn and evaluate these factors before making investment recommendations.

Many of the customer complaints against Fahsholtz include allegations that he recommended unsuitable investments. Brokers and brokerage firms may be liable for making unsuitable investments. For more information about whether you were recommended an unsuitable investment, see Silver Law Group’s page about suitability.

Did You Invest With Michael Fahsholtz at Stifel, Nicolaus & Company?

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to represent investors nationwide to help recover investment losses due to stockbroker misconduct. Our lawyers are experienced in representing investors with unsuitability claims. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingency fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today and let us know how we can help.