Erez Law is currently investigating former Fidelity Brokerage Services LLC financial advisor Michael Jon DeBoer (CRD# 2114067) regarding outside business activities that lost his clients significant amounts of money. DeBoer was registered with Fidelity Brokerage Services LLC in Clearwater, Florida from October 2014 to May 2015. Previously, DeBoer was registered with more than a dozen brokerage firms since 1991. His most recent registrations were with the following brokerage firms:
- Dalton Strategic Investment Services Inc., Spring Hill, Florida (11/2009-04/2013)
- Planmember Securities Corporation, Spring Hill, Florida (12/2007-11/2009)
- Mutual Service Corporation, Spring Hill, Florida (07/2004-12/2007)
- Legacy Financial Services, Inc., Petaluma, California (01/2003-07/2004)
In May 2016, FINRA barred DeBoer after he “consented to the sanction and to the entry of findings that he recommended that two customers collectively invest $200,000 in securities offered by a software development company, and in return for the referrals DeBoer received $32,000 in compensation from the company, while the customers ultimately lost the entirety of their investments in the securities,” according to the Acceptance, Waiver & Consent (AWC). The securities were not offered through his former employer and DeBoer did not disclose these transactions to his employer. Additionally, DeBoer failed to reasonably investigate the software company or its securities prior to recommending them to his clients, and he lacked a reasonable basis to believe the securities were suitable investments. DeBoer also marketed the services of an entity that provided separately-managed futures trading accounts to 28 customers, which earned him $70,000 in returns for those referrals. DeBoer did not disclose this outside business activity to his firm.
Fidelity Brokerage Services LLC never had any knowledge of this arrangement, and thus DeBoer participated in selling away. Selling away occurs when a U.S. based brokerage firm sells an investment to a client without his brokerage firm’s permission, the broker is selling investments away from the firm, or simply “selling away.” A broker might partake in this inappropriate practice to earn a commission he or she would otherwise have to pass up. These investment opportunities are not properly vetted by the associated brokerage firm and therefore exposes the client to risk. This practice violates FINRA Rule 3280 that requires all people associated with FINRA to report all transactions to their employer.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Fidelity Brokerage Services LLC may be liable for investment or other losses suffered by DeBoer’s customers.
Erez Law represents investors in the United States for claims against former Fidelity Brokerage Services LLC financial advisor Michael Jon DeBoer, who is alleged to conduct outside business activities that lost his clients their investments. If you were a client of former Fidelity Brokerage Services LLC financial advisor Michael Jon DeBoer or another firm, and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.