Articles Tagged with Janus Distributors LLC

FINRA has barred financial advisor Michael Edward Magill (CRD #2024663) from the securities industry.  Michael Magill was a stockbroker at Foreside Fund Services, LLC, in Portland, Maine, from August 2017 until January 2019.

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

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

Registration Dates	Firm Name	Branch Location
August 2017 – January 2019	Foreside Fund Services, LLC	Portland, Maine
August 2016 – July 2017	Crossroads Capital Distributors, LLC	Newport Beach, California
December 2004 – December 2015	Janus Distributors LLC	Denver, Colorado
January 2000 – January 2005	Davis Distributors, LLC	Tucson, Arizona
January 1996 – January 1997	TCC Securities Corporation	San Francisco, California
July 1995 – January 1996	Phoenix Securities, Inc.	San Rafael, California
June 1994 – November 1994	Continental Capital Group, Inc.
May 1991 – November 1992	John Hancock Distributors, Inc.	Boston, Massachusetts
May 1991 – November 1992	John Hancock Mutual Life Insurance Company	Boston, Massachusetts
January 1990 – July 1990	*Hibbard Brown & Co., Inc.	New York, New York

*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.

This blog has previously written about other recent selling away allegations:  Future Income Payments, LLC.

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 lawyer August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential review of your account.

Iorio Altamirano LLP is a boutique law firm located in the heart of New York City. Iorio Altamirano LLP represents investors nationwide who have suffered investment losses due to securities fraud.