According to the Financial Industry Regulatory Authority (“FINRA”) Michael Magill has been barred from the industry. (FINRA Case #2024663)
FINRA began an investigation into the sales practices of Michael Magill after it received a tip in 2019. FINRA Rule 3280 prohibits associated person from participating in private securities transactions unless the associated person first provides written notice to his member firm that describes in detail the proposed transaction, his role in the transaction, and whether he has received or may receive selling compensation in connection with the transaction. The practice of a broker selling an investment that is not approved by his member firm is called “selling away”. Rule 3280 defines a private securities transaction as “any securities transaction outside the regular course or scope of an associated person’s employment with a member.” Selling away violates FINRA Rule 3280.
In 2018 while registered with Foreside, 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, gave them marketing materials and information, and then asked them to view the issuer’s website to fill out the documents necessary to invest. Magill told the potential investors that this investment was only available for a short time and that it offered higher interest rates for immediate investments. FINRA alleged that 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 issuer and Magill’s supervisor at the private issuer both pled guilty to conspiracy to commit wire fraud and were sentenced to prison. Magill provided no written notice to his member firm, Foreside, and received no written approval to participate in the sale on behalf of the private issuer. This conduct is commonly referred to as selling away and Magill violated FINRA Rules 3280 and 2010.
Michael Edward Magill entered the securities industry in 1990. Michael Magill (CRD # 2024663) has been registered with the following firms:
Hibbard Brown & CO., Inc.
CRD # 468
New York, NY
John Hancock Distributors, Inc.
CRD # 6390
07/31/2009 – 02/15/2012
John Hancock Mutual Life Insurance Company
CRD # 5181
Continental Capital Group, Inc.
CRD # 29823
Phoenix Securities, Inc.
CRD # 10507
San Rafael, CA
07/25/1995 – 01/04/1996
TCC Securities Corp.
CRD # 20842
Davis Distributors, LLC
Davis Distributors, LLC
Janus Distributors, LLC
CRD # 7975
Crossroads Capital Distributors, LLC
Newport Beach, CA
Foreside Fund Services, LLC
Hanley law represents individual investors nationwide with significant losses in their portfolios, retirement plans or investment accounts. The firm is dedicated to assisting investors to recover losses suffered by unsuitability, selling away, over-concentration, fraud, misrepresentation, self-dealing, unauthorized trades or other wrongful acts, whether intentional or negligent. The firm handles cases against Wall Street broker dealers.
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