Michael Witt Investigation
February 20, 2023- Plano, TX
The FINRA records of Michael Witt, an Ameriprise Financial Services broker, disclose 2 regulatory events and a termination.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In 8/2022 FIRNA case #2021069218401 alleged that Witt caused his member firm to maintain inaccurate books and records by changing the representative code for trades. The findings stated that Witt entered two separate agreements through which he agreed to service certain customer accounts that he shared with two retired representatives. Witt’s actions resulted in him receiving higher commissions from the trades than what he was entitled to receive pursuant to the agreements. Subsequently, the firm reimbursed the retired representatives. The sanctions were a one month suspension and a $5,000 fine paid by Witt individually.
In 6/2021, Texas case #REG21-CAF-03 alleged that from 5/2016 through 11/2020, while an investment advisor representative of Morgan Stanley Smith Barney, Witt participated in a sun-setting program wherein he agreed to service certain client accounts which were previously serviced by former advisors of the firm. This program called for Witt and the former advisor to each receive a portion of the transaction revenue, but in connection with the entry of multiple trades in these accounts, he entered the incorrect production number which resulted in Witt receiving 100% of the trade revenue rather than the percentage identified in the agreement. Sanctions were a 30 day suspension and a personal fine of $30,000.
In 1/2021, Witt was discharged from employment with Morgan Stanley Smith Barney in response to allegations that he submitted transactions under production numbers that were inconsistent with agreement with other representatives resulting in a shortfall of revenue credited to other representatives. Witt had been employed with Morgan Stanley Smith Barney in Dallas since 8/2000.
If you have losses in an account handled by Michael Witt call for a no charge consultation to learn about your options for recovery of damages.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
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