Brian Michael White – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Brian Michael White.
BrokerComplaints.com is currently investigating allegations related to Brian Michael White. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Brian White
Brian Michael White is an Investment Adviser. Brian Michael White’s Central Registration Depository (CRD) number is 5126711 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/5126711.
Click here to download a Detailed Audit Report for Brian Michael White.
Brian Michael White has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Brian Michael White’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 5/15/2014
- Disclosure Type: Regulatory
- Resolution: Final |FDA Docket:2012033128703
- AAO Docket: 2012033128703
- Initiated By: FINRA
- Allegations: WHITE WAS NAMED A RESPONDENT IN A FINRA COMPLAINT ALLEGING THAT HE AND TWO OTHER REGISTERED REPRESENTATIVES OF HIS MEMBER FIRM SIGNED A PARTNERSHIP AGREEMENT CREATING AN ENTITY, A LIMITED PARTNERSHIP, WHOSE PURPOSE WAS TO PROVIDE A VEHICLE FOR THE THREE TO DEVELOP VARIOUS BUSINESS OPPORTUNITIES OUTSIDE OF THE FIRM, INCLUDING THE SALE OF FIXED ANNUITY AND INSURANCE PRODUCTS, REAL ESTATE INVESTMENTS, AND BUSINESS PLANNING SERVICES. THE COMPLAINT ALLEGES THAT THE ENTITY’S BUSINESS WAS OUTSIDE THE SCOPE OF WHITE’S EMPLOYMENT WITH HIS FIRM AND HE AND HIS TWO PARTNERS NEVER SOUGHT PERMISSION TO PARTICIPATE IN THE BUSINESS, NOR DID THEY DISCLOSE ITS EXISTENCE TO THE FIRM, CONTRARY TO THE FIRM’S COMPLIANCE POLICIES. WHITE NEVER OBTAINED WRITTEN APPROVAL PRIOR TO UNDERTAKING ANY OUTSIDE BUSINESS ACTIVITY, OR PROVIDED PROMPT WRITTEN NOTICE TO THE FIRM. DURING AN INTERNAL FIRM ANNUAL COMPLIANCE EXAMINATION, BEFORE BEING CONFRONTED WITH THE EXISTENCE OF THE ENTITY BY THE COMPLIANCE EXAMINER, WHITE STATED AND VERIFIED BY SIGNATURE THAT HE WAS NOT INVOLVED IN ANY OUTSIDE BUSINESS ACTIVITIES BEYOND WHAT HE HAD PREVIOUSLY DISCLOSED IN AN OUTSIDE BUSINESS ACTIVITY FORM, WHICH DID NOT MENTION THE ENTITY. THE COMPLAINT ALSO ALLEGES THAT WHITE PARTICIPATED IN AN UNDISCLOSED PRIVATE SECURITIES TRANSACTION INVOLVING THE SALE OF A $100,000 PROMISSORY NOTE, A CONVERTIBLE NOTE, TO HIS MOTHER. WHITE WAS PAID COMPENSATION OF $2,500 FOR THE TRANSACTION. WHITE DID NOT DISCLOSE THE EXISTENCE OF THIS TRANSACTION TO HIS FIRM, NOR DID HE SEEK PERMISSION FROM THE FIRM TO PARTICIPATE IN IT. WHITE PARTICIPATED IN THIS TRANSACTION OUTSIDE THE REGULAR COURSE OR SCOPE OF HIS EMPLOYMENT WITH THE FIRM. DURING AN ANNUAL COMPLIANCE EXAMINATION, WHITE STATED AND VERIFIED BY SIGNATURE THAT HE HAD NOT PARTICIPATED IN ANY PRIVATE SECURITIES TRANSACTIONS. TO DATE, WHITE’S MOTHER HAS NOT RECEIVED ANY PAYMENTS ON THE CONVERTIBLE NOTE, AND THE NOTE OWNER HAS FILED FOR BANKRUPTCY. THE FIRM’S COMPLIANCE MANUAL SPECIFICALLY PROHIBITED ENGAGING IN PRIVATE SECURITIES TRANSACTIONS UNLESS PRIOR WRITTEN NOTICE WAS PROVIDED AND PRIOR WRITTEN PERMISSION WAS GIVEN. MOREOVER, THE COMPLIANCE MANUAL SPECIFICALLY LISTED THE SALE OF PROMISSORY NOTES AS BEING WITHIN THE PROHIBITION. WHITE NEVER PROVIDED WRITTEN NOTICE OF, OR RECEIVED WRITTEN PERMISSION FOR, PARTICIPATION IN THE SALE OF NOTES BY A REPRESENTATIVE OF THE NOTE OWNER. THE COMPLAINT FURTHER ALLEGES THAT IN RESPONSE TO A FINRA REQUEST TO APPEAR AND GIVE TESTIMONY, WHITE PROVIDED FALSE TESTIMONY REGARDING THE OUTSIDE BUSINESS AND HIS ACTIVITIES WITH THIS BUSINESS.
- Resolution: Decision |Sanctions: Bar (Permanent) |Registration Capacities Affected: All Capacities
- Start Date: 10/14/2015 Sanctions: Monetary Penalty other than Fines |Amount: $11,590.76
- Regulator Statement: Hearing Panel decision rendered June 30, 2015. The sanction was based on findings that during a FINRA investigation, White falsely testified at an on-the-record interview regarding his knowledge about, and involvement with, a limited partnership entity. The findings stated that White engaged in undisclosed outside business activities through the entity and failed to provide written notification to his member firm until after he had participated in the activity, and only after the firm discovered the activity and directed him to disclose it in writing. The findings also stated that White participated in an undisclosed private securities transaction involving the sale of a promissory note to his mother. The transaction was outside the regular course or scope of White’s employment with his firm, and he failed to notify or provide the firm with prior written notice of the transaction. ON JULY 24, 2015, THIS MATTER WAS APPEALED TO THE NAC AND THE SANCTIONS ARE NOT IN EFFECT PENDING REVIEW. The NAC did not call this matter for review following White’s withdrawal of his appeal of the Office of Hearing Officers (OHO) decision. The decision became final October 14, 2015.
DISCLOSURE 2 –
- Event Date: 9/14/2011
- Disclosure Type: Judgment / Lien
- Judgment/Lien Amount: $14,147.85
- Judgment/Lien Type: Civil
- Broker Comment: ATTORNEY SIMON HUGHES HAS BEEN HIRED ONCE I HAVE DISCOVERED THIS ITEM, AND ITEM/ISSUE WILL BE COMPLETED WITHIN THE NEXT 3 MONTHS.
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- HORNOR, TOWNSEND & KENT, INC. (CRD#: 4031) :: 9/25/2012 – 10/29/2013 :: HOUSTON, TX
- AXA ADVISORS, LLC (CRD#: 6627) :: 12/22/2008 – 8/17/2011 :: THE WOODLANDS, TX
- AXA ADVISORS, LLC (CRD#: 6627) :: 8/21/2007 – 11/3/2008 :: HOUSTON, TX
- AMERIPRISE FINANCIAL SERVICES, INC. (CRD#: 6363) :: 6/4/2007 – 7/20/2007 :: THE WOODLANDS, TX
- AMERIPRISE FINANCIAL SERVICES, INC. (CRD#: 6363) :: 3/2/2007 – 4/30/2007 :: THE WOODLANDS, TX
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Brian Michael White, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Brian White
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Brian Michael White – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (5126711) for the broker – Brian Michael White
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.
The views and opinions expressed in these articles are those of the source BROKERCOMPLAINTS.COM and do not necessarily reflect the official position of ‘Complaints Bureau,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.
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