Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that former broker/adviser Michael Edward Magill (CRD # 2024663) was recently barred from the securities industry by FINRA’s Department of Enforcement. The sanction occurred as a result of an investigation into selling away – recommending transactions in private investments away from his firm.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Magill.
Registration Background for Michael Magill
Mr. Magill first became registered in the securities industry in 1990. He was most recently registered with Portland, ME based Foreside Fund Services, LLC (CRD # 46106) from August 2017 to January 2019. His prior registrations include Crossroads Capital Distributors, LLC (CRD # 171776) from August 2016 to July 2017 and Janus Distributors, LLC (CRD # 28832) from December 2004 to December 2015.
FINRA’s Allegations Against Michael Magill
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated December 7, 2020, Mr. Magill consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “On December 3, 2018, while registered with Foreside, [Mr.] Magill began working on behalf of a private issuer to find potential investors for a principal-protected note offered by the issuer”;
- “[Mr.] Magill recommended the note to three investors, who invested a total of $700,000. Investor A, who was 78 years old at the time, invested $100,000 on December 12, 2018. Investor B invested $250,000 on December 12, 2018, and another $250,000 on December 27, 2018. Investor C invested $100,000 on December 27, 2018”;
- “When recommending the note to the investors, [Mr.] Magill offered higher interest rates for immediate investments and told the investors that the investment was only available for a short time”;
- “[Mr.] Magill earned $14,000 in commissions, a bonus for securing investments by the end of 2018, and the salary the private issuer paid him”;
- “Prior to recommending the note, [Mr.] Magill failed to conduct reasonable diligence to understand the features and risks of investing in the note”;
- “Foreside’s policy regarding private securities transactions required registered representatives to submit the transaction in writing to the firm and receive the firm’s written approval prior to participating in the transaction”;
- “Contrary to that policy, [Mr.] Magill provided no written notice to Foreside and received no written approval to participate in the three private securities transactions”;
- “In January 2019, the private issuer stopped paying [Mr.] Magill’s salary and no longer reimbursed him for his business expenses”;
- “In February 2019, federal authorities shut down the private issuer’s offices”;
- “An executive of the private issuer and [Mr.] Magill’s supervisor at the private issuer both pled guilty to conspiracy to commit wire fraud and were sentenced to prison”; and
- By virtue of his actions, Mr. Magill violated FINRA Rule 3280, regarding private securities transactions and FINRA Rule 2010, regarding principles of trade and standards of commercial honor.
Michael Magill Barred from the Securities Industry by FINRA
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s December 7, 2020 AWC also indicates that Mr. Magill consented to the following sanction(s):
- A bar from association with any FINRA member in all capacities.
Michael Magill has No History of Customer Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Magill reveals he has no history of customer complaints and/or customer initiated arbitrations.
If you or someone you know has or had a brokerage account with Michael Magill and have concerns regarding losses in your investments or possible sales practice violations including unsuitable private securities and fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.