Broker Michael Siegel Suspended and then Permanently Barred by FINRA – Investigation Update

A former client is seeking more than $2 million in damages

In July of 2016, a customer dispute alerted the Financial Industry Regulatory Authority (FINRA) to broker Michael Siegel. What first resulted in a suspension later became a permanent ban when he didn’t respond to the agency’s request for additional information.

Over a span of three years, Siegel was alleged to have been involved in many dubious activities, including fraud, misrepresentation, and churning. All are serious charges, and churning is troublesome because it means Siegel excessively traded his clients’ investments for the express purpose of benefiting himself with extra commissions.

To prove that excessive trading took place, FINRA looks at a number of “factors, such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account.” Churning is strictly prohibited and it violates several securities industry regulations.

One firm that Siegel was working for during the time in which the allegations were made was National Securities Corporation in Edison, NJ. This firm is routinely the target of regulatory investigations, having 78 FINRA disclosures, including 61 regulatory events, two civil events, and 15 cases of FINRA arbitrations claims, many of which have resulted in monetary awards to claimants.

Michael Siegel began as a broker in 1989, and for the next three decades worked at firms mostly in the New Jersey area and was also registered with firms with corporate offices in St. Louis, San Diego, and New York City. The dispute against Siegel is still pending, but the client is seeking $2,016,064.90 in damages.

If you were one of his clients, it would be in your best interests to learn more about the allegations against him. You can read his FINRA BrokerCheck report and also get in touch with the Silver Law Group.

The attorneys at Silver Law Group are leaders in the field of securities arbitration. We represent individual and institutional investors across the United States who have lost money at the hands of a trusted financial advisor. Scott Silver is currently the chairman of the American Trial Lawyers Association, Securities and Financial Fraud Group and routinely represents investors in securities arbitration claims.

If you lost money as the result of his potentially illegal actions, we may be able to help you recover it. Contact us at 1-800-975-4345 or fill out our contact form for a free consultation from an experienced arbitration lawyer.