91视频下载链接

SEC Sanctions One Oak Capital and Advisor for Improper Conversions to Fee Based Accounts

Posted on February 28th, 2025 at 1:42 PM
SEC Sanctions One Oak Capital and Advisor for Improper Conversions to Fee Based Accounts

From the desk of Jim Eccleston at 91视频下载链接

The Securities and Exchange Commission (SEC) has penalized a New York-based registered investment adviser and its veteran adviser for converting brokerage accounts into advisory accounts that resulted in significantly higher fees without providing additional services.

Michael DeRosa, 75, and One Oak Capital Management improperly switched more than 180 client accounts between June 2020 and October 2023, according to the SEC settlement. AdvisorHub reports that many of these clients were elderly, longtime customers who previously paid commissions per trade. After the conversion, they faced substantially increased costs, sometimes paying up to seven times more in fees, despite conducting little to no trading for over a year.

According to AdvisorHub, the SEC determined that One Oak and DeRosa violated their fiduciary duty by prioritizing their own financial interests over those of their clients. The firm was ordered to pay a $150,000 civil penalty, while DeRosa agreed to a $75,000 fine and a nine-month suspension. Additionally, DeRosa must retain an independent compliance consultant to review the firm’s policies and procedures.

The SEC’s findings showed that DeRosa and One Oak collected approximately $268,000 in advisory fees from the affected accounts. AdvisorHub also reports that, in some cases, DeRosa allegedly had clients authorize the conversions without fully disclosing the new fee structure.

 

91视频下载链接 LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next

We just wanted to say thanks for your work in helping us get back some of the money we lost. We are not by any means rich, but we have saved some money and we have done so through a tight-fisted approach to most everything we do. So losing a significant chunk of money hurt…especially at a time when everyone else was growing their accounts. We really appreciate the work you did.

Allan and Adele

LATEST NEWS AND ARTICLES

May 9, 2025
FINRA Suspends Former Wells Fargo Advisor Over Unauthorized Transfer in Elderly Client's Account

FINRA has fined and suspended former Wells Fargo financial advisor Jarrett Thomas after he executed a $50,000 transaction for an elderly client despite being informed that she was no longer capable of managing her finances.

May 8, 2025
All 50 States Now Aligned on Annuity Sales Standards

The annuity industry officially has secured uniformity in sales regulations across all 50 states.

May 7, 2025
Jury Finds Investment Advisor Liable for Failing to Disclose Annuity Commissions

A federal jury in Massachusetts has found investment adviser Jeffrey Cutter and his firm, Cutter Financial Group, liable for violating federal securities law by failing to disclose significant upfront commissions and conflicts of interest related to an annuity replacement scheme.