Michael McGregor, formerly with Blackrock Capital, Suspended from Securities Industry for Four Months
Have you lost money with financial advisor Michael McGregor from New York, New York? We are investigating allegations made by FINRA, the Financial Industry Regulatory Authority, against Michael Anthony McGregor. FINRA alleged that McGregor excessively traded or churned a customer’s account. To settle these allegations, McGregor agreed to a four-month suspension from the securities industry, a fine of $5,000, and restitution of over $14,000. However, brokers who have no intention to return to the industry rarely pay these fines and restitution.
FINRA alleged that McGregor engaged in excessive trading or churning between August 2014 and May 2015, while he was associated with Blackrock Capital. The excessive trading in two accounts had turnover ratios ranging of 7 and 9, respectively, with cost-equity ratios of 25% and 32%.
One of the most common ways to determine whether the account was excessively traded or churned is to determine the annual turnover ratio. This ratio shows how often the securities in the account are bought or sold within a year. Authority has held that an annual turnover of 4 or more is a “presumption” of churning, and an annual turnover of 6 or more is a “conclusion” of churning. Thus, if the accounts had turnovers over 7, then there would be a conclusion that there was churning or excessive trading.
Another way to determine whether there was excessive trading is the cost equity ratio. This ratio takes the commissions generated by the trading, divided by the average value of the account. This ratio essentially determines the returns that an account needs to make just to break even. Thus, an account with a cost-equity ratio of 25% would need to earn profits of 25% just to break even from all the costs of trading.
Michael McGregor was a financial advisor and registered representative of Blackrock Capital from July 2014 to February 2016. He also worked with Aegis Capital Corp. from March 2016 to January 2018. He worked with various other firms between 2014 and January 2017. He worked at branch offices in New York, New York. McGregor’s BrokerCheck report shows that he had numerous tax liens as well.
Brokerage firms like Blackrock Capital and Aegis Capital Corp. have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Our attorneys have represented over one thousand investors who have been defrauded by their financial advisor or stockbroker. While we have offices in Denver and Seattle, we have also previously represented numerous investors throughout New York.
Click to view: McGregor, Michael FINRA AWC
Click to view: McGregor, Michael BrokerCheck 3.15.18
If you have lost money with Michael McGregor and want to hear about ALL legal options, please visit https://www.israelsneuman.com or call us at 720-599-3505.
Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.