WARNING! Impending Investigation: LARRY MICHAEL CRABTREE and WFG INVESTMENTS
Larry Michael Crabtree and WFG Investments
Have you lost money with financial advisor Larry Michael Crabtree of Edmond, Oklahoma? We are investigating allegations made by FINRA, the Financial Industry Regulatory Authority, against Michael Crabtree. FINRA investigated Crabtree for allegations that he engaged in unsuitable trading in a customer’s account, and that he exercised discretion without prior written authority.
FINRA alleges that from 2009 to 2013, L. Michael Crabtree made unsuitable investment recommendations to a customer in their IRA. One example that FINRA pointed to was an investment in GMX Resources Preferred Stock, a highly leveraged oil and gas company. GMX Resources eventually filed for bankruptcy, and investors’ investments were nearly wiped out. FINRA also alleged that Crabtree exercised discretion in customers’ accounts without prior written authority, in violation of FINRA rules. Finally, FINRA alleged that Crabtree sent unbalanced and misleading communications to investors. To settle these allegations, Crabtree was suspended from the securities industry for six months.
Larry Michael Crabtree was a financial advisor and registered representative of WFG Investments from July 2008 to February 2014. He was also affiliated with Wilbanks Securities from March 2014 to the present. He worked at branch offices in Edmond, Oklahoma and Oklahoma City. Crabtree was fired by WFG Investments for failure to obtain prior approval of client communications. Crabtree was also previously fired from Merrill Lynch in 1996. L. Michael Crabtree is also the subject of at least two customer complaints.
In a related action, FINRA brought a claim against Carl Busch, Crabtree’s supervisor. FINRA alleged that Busch failed to adequately supervise Crabtree. To settle these claims, Busch agreed to pay a $5,000 fine and agreed to be suspended for 45 days.
Brokerage firms like WFG Investments 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.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado and the Seattle area. We represent investors in FINRA arbitration proceedings in all 50 states, including investors in Oklahoma. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including WFG Investments, LPL Financial, Merrill Lynch, Morgan Stanley, Smith Barney, Stifel Nicolaus & Company, UBS Financial Services, Oppenheimer, Charles Schwab, Wells Fargo Advisors, Ameriprise Financial Services, Raymond James, ProEquities, Securities America, National Securities Corp., and many others.
Click to view: Crabtree FINRA AWC
Click to view: Busch FINRA AWC
Click to view: Crabtree BrokerCheck 12.31.15
HAVE YOU LOST MONEY WITH LARRY MICHAEL CRABTREE or WFG INVESTMENTS?
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