If you have lost money with Michael Magill, contact New York securities arbitration lawyers Iorio Law PLLC for a free and confidential evaluation of your account.

Mr. Magill has been a financial advisor and registered representative at the following firms:

*FINRA expelled Hibbard Brown & Co., Inc. on February 22, 1996

Michael Magill and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on December 7, 2020, over allegations related to Magill recommending private securities transactions to three investors. The securities sold to the investors were not legitimate investments and the three investors, who were not customers of Foreside Fund Services, LLC, lost their entire investment, totaling $700,000. Specifically, FINRA alleged:

• On December 3, 2018, while registered with Foreside Fund Services, LLC, Mr. Magill began working on behalf of a private issuer to find potential investors for a principal-protected note offered by the issuer.
• Magill contacted prospective investors, provided them with marketing materials, explained the investment and terms of the note, and directed them to the issuer’s website to complete the paperwork necessary to make the investment.
• In December 2018, Mr. Magill recommended the principal-protected note to three investors, who invested a total of $7000,000.
• The first investor was 78 years old at the time of the investment and invested $100,000.
• A second investor invested $250,000, and a third investor invested $100,000.
• The investors were not customers of Foreside Fund Services, LLC.
• To entice the prospective investors, Mr. Magill offered higher interest rates for immediate investments and told the investors that the investment was only available for a short time.
• Magill earned $14,000 in commissions, a bonus for securing investments by the end of 2018, and the salary the private issuer paid him.
• Before recommending the principal-protected note, Mr. Magill failed to conduct reasonable diligence to understand the features and risks of investing in the note.
• In February 2019, federal authorities shut down the private issuer’s offices.
• An executive of the private issuers and Mr. Magill’s supervisor at the private issuer both pled guilty to conspiracy to commit wire fraud and sentenced to prison. Another executive died in custody while awaiting trial.
• Foreside Fund Services, LLC required its financial advisors to receive the firm’s written approval prior to participating in the transaction.
• Magill did not provide written notice to Foreside Fund Services, LLC and received no written approval to participate in the three private securities transactions.

When a financial advisor solicits a customer to participate in a securities transaction that is not offered or approved by the advisor’s employing brokerage firm, it is often referred to as selling away.

Brokerage firms like Foreside Fund Services, LLC must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity, such as private securities transactions, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to sufficiently supervise its financial advisors or the investment account activity, it may be liable for investment losses sustained by customers.

If you have lost money with Michael Edward Magill or Foreside Fund Services, LLC, contact New York securities arbitration attorney August Iorio of Iorio Law PLLC. August Iorio can be reached at info@iorio.law or toll-free at (646) 330-4624 for a free and confidential review of your legal rights.

About Iorio Law PLLC

Iorio Law PLLC is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have over 15 years of experience as securities arbitration lawyers and have helped investors recover investment losses in over 800 cases. The firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

This blog was published by August Iorio when he was a Partner at his previous firm and has been updated to reflect Iorio Law PLLC’s new contact information. To evaluate any potential claims, contact securities arbitration lawyer August Iorio for a free consultation contact Iorio Law PLLC at info@iorio.law or (646) 330-4624.