Larry Joseph Michaels (CRD #4351477, Lake Forest, California)

April 18, 2024 – An AWC was issued in which Michaels was fined $10,000 and suspended from association with any FINRA member in all capacities for two months. Without admitting or denying the findings, Michaels consented to the sanctions and to the entry of findings that he exercised discretionary authority in customer accounts without prior written authorization from the customers and without having the accounts accepted as discretionary by his member firm. The findings stated that Michaels did not communicate with the customers prior to the execution on the dates of the trades and the firm’s WSPs prohibited the exercise of discretionary authority in brokerage accounts. The findings also stated that Michaels failed to notify the firm about the full nature of his participation in an OBA. Upon joining the firm, Michaels disclosed his role as an owner of an accounting business and that he was engaged in providing income tax preparation and accounting services. The firm approved this OBA based on this disclosed role. However, Michaels’ work for the company exceeded the scope of his disclosed role as he provided additional services to his accounting company clients, some of which were his firm’s brokerage customers. Michaels’ undisclosed roles included acting as a manager and/or consultant to assist his accounting company clients in managing and growing their businesses. In addition, Michaels acted as an incorporator and filed articles of incorporation for several businesses on behalf of his clients, and was listed as a governor, who had the authority to make decisions on behalf of at least one company. The suspension is in effect from May 20, 2024, through July 19, 2024. (FINRA Case #2020069057401) If you have suffered losses as a result of Larry Joseph Michaels's act and/or actions we would like to hear from you. We are currently investigating claims on behalf of clients who have suffered significant losses in their portfolios that are managed by Larry Joseph Michaels. The Schwartz Law Firm represents investors in claims against financial advisors and their firms. If you have questions about your potential claim or need assistance from an investment fraud lawyer, please contact us at 866-618-0545 or email Matthew Schwartz directly at mschwartz@tslfirm.com.