Broker Investigation: Michael D. Jackson

Michael Dennis Jackson (CRD#: 2784958) is a former broker and financial advisor. From 2009 to 2017, Mr. Jackson was a representative of Securities America. During this time, he was based at a branch location in University Place, Washington.

On December 10th, 2018, the Financial Industry Regulatory Authority (FINRA) suspended Michael D. Jackson for six months and fined him $10,000. This disciplinary action came after findings that Mr. Jackson conducted hidden trades in an effort to make up a client’s previous investment losses.

Broker Misconduct: Former Securities America Representative Michael D. Jackson

In July of 2016, a longtime customer of Michael D. Jackson reached out to him to complain about investment losses. Mr. Jackson encouraged her to open a new account at another broker-dealer — she deposited $10,000 — and he began executing an aggressive options trading strategy using her funds. FINRA contends that Mr. Jackson received access to her log-in credentials and personally conducted nearly four dozen high-risk options trades.

Notably, Mr. Jackson never notified his own brokerage firm about this arrangement; nor did he receive any form of written authorization from the customer. Eventually, his aggressive options trading strategy resulted in significant losses for the client. In fact, the value of the account dwindled from $10,000 down to less than $3.00. This prompted the customer to complain to Securities America.

After the hidden trading came to light, Securities America terminated this broker. Regulators charged Mr. Jackson with violations of multiple rules, including FINRA Rule 2111 and FINRA Rule 3280. Without admitting wrongdoing, Mr. Jackson consented to a six-month suspension and a $10,000 fine.

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