Goodman & Nekvasil P.A., May Recover Your Investment Losses – Keith Joseph Michelfelder (Keith Michelfelder) Formerly Licensed with National Securities Corporation, Suspended from Securities Industry
Keith Michelfelder was formerly licensed with National Securities Corporation from 2016 to 2017. Keith Michelfelder was previously licensed with Aegis Capital Corp. and Joseph Gunnar & Co. LLC. Keith Michelfelder was suspended from the securities and investment banking industry for 60 days and fined $10,000 by the Financial Industry Regulatory Authority (FINRA). FINRA reports that Keith Michelfelder consented to the sanctions and to the entry of the findings that Keith Michelfelder effected at least 16 transactions in the accounts of a member firm customer without having obtained prior written authorization from the customer and written acceptance of the accounts as discretionary by Keith Michelfelder’s firm.
The findings stated that the firm’s policies prohibited the use of non-firm email addresses to conduct firm business. FINRA reports that Keith Michelfelder signed annual certifications agreeing to use the firm’s domain email only for communications with customers and concerning firm business. Nevertheless, FINRA reports that Keith Michelfelder knowingly used a non-firm email address to communicate with the above customer. FINRA reports that Keith Michelfelder communicated with the customer through a personal email address concerning a sales practice complaint that the customer made concerning Keith Michelfelder’s handling of the customer’s accounts at the firm. FINRA reports that because Keith Michelfelder used a non-firm approved email address, the customer’s complaint did not immediately come to the firm’s attention. FINRA reports that as a result, Keith Michelfelder prevented the firm from discharging its supervisory and recordkeeping obligations.
FINRA also reports that an arbitration claim was filed involving Keith Michelfelder’s conduct with Joseph Gunnar & Co., LLC, alleging unauthorized trading, churning, unsuitability, improper concentration of investments, breach of fiduciary duty, securities fraud, violation of Maryland securities laws, breach of contract, violation of FINRA rules, unjust enrichment, negligence, negligent supervision and respondeat superior. According to FINRA, the causes of action relate to the alleged churning and unauthorized trading, sale and overconcentration of common stocks and mutual funds in Claimant’s accounts, including, but not limited to, Apple, Facebook, Amazon, Molycorp, Inc., the Genesis Opportunity Fund and Buttonwood Funds. This arbitration claim did not settle and proceeded to final hearing. The arbitration panel found Joseph Gunnar & Co., LLC, Keith Michelfelder and a third party, jointly and severely liable and were ordered to pay a $702,037 award in compensatory damages to the claimant.
FINRA reports that a second arbitration claim involving Keith Michelfelder’s conduct with Joseph Gunnar & Co., LLC was filed, alleging unauthorized trading. This arbitration claim settled for $61,500, with Joseph Gunnar contributing $15,000 to this settlement.
FINRA also reports that there are four unsatisfied and outstanding judgments or liens against Keith Michelfelder.
If you lost any money on investments with Keith Michelfelder, you may be able to recover your losses from National Securities Corporation, Aegis Capital Corp. and/or Joseph Gunnar & Co. LLC. This is because National Securities Corporation, Aegis Capital Corp. and Joseph Gunnar & Co. LLC had a duty to supervise Keith Michelfelder.
If you lost money on investments with Keith Michelfelder and believe that the investments may have been unsuitable or otherwise improper for you, we would like to discuss the possibility of your retaining our firm to represent you in an arbitration action against National Securities Corporation, Aegis Capital Corp. and/or Joseph Gunnar & Co. LLC concerning Keith Michelfelder’s conduct. There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA, has practiced in this area of the law for more than 35 years. Goodman & Nekvasil, P.A. has recovered more than $300 million on behalf of victimized investors. If you lost money on other investments with Keith Michelfelder and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.
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