Michael Daniel Shaw, of Baton Rouge, Louisiana, a stockbroker formerly registered with VSR Financial Services, Inc., has been named in a customer initiated investment related arbitration claim, in which customers were collectively awarded $307,000.00 in damages on February 4, 2016, based upon allegations that Shaw breached his fiduciary and contractual duties to the customers, negligently handled the customers’ investment portfolios, made misrepresentations and omissions to the customers, and committed fraud in reference to the customers’ investments in real estate securities, oil & gas products, and direct investment programs.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Shaw has been identified in twenty-seven additional customer initiated investment related disputes containing allegations of his misconduct while employed with VSR Financial Services and UBS Financial Services, Inc. Particularly, on October 18, 2013, a customer initiated investment related written complaint involving Shaw’s conduct was settled for $120,000.00 in damages based upon allegations including breach of contract, breach of fiduciary duty, misrepresentation, and unsuitability.
Subsequently, on December 10, 2013, a customer initiated investment related oral complaint regarding Shaw’s activities was resolved for $91,000.00 in damages based upon allegations that Shaw effected unsuitable real estate security transactions in the customer’s account. On June 26, 2015, another customer initiated investment related arbitration claim concerning Shaw’s activities was resolved for $1,262,081.74 in damages based upon allegations that Shaw violated the blue-sky laws of the State of Louisiana, breached his contractual and fiduciary obligations to the customer, negligently handled the customer’s account, induced the customer to invest in securities based upon Shaw’s misrepresentations, and defrauded the customer.
Further, on July 24, 2015, a customer initiated investment related arbitration claim involving Shaw’s conduct was settled for $70,000.00 in damages based upon allegations of fraud, negligence, breach of fiduciary duty and breach of contract pertaining to transactions effected in the customer’s account consisting of direct investment products, promissory notes, and real estate securities.
Shaw was terminated by VSR Financial Services, Inc. on October 14, 2011, based upon allegations that he effected transactions in a customer’s account which were not suitable, made misrepresentations concerning private placement investments and falsified customer account documentation.
Shaw has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he engaged in securities fraud. Letter of Acceptance, Waiver and Consent, No. 2010022963601 (Oct. 20, 2011). FINRA concluded that Shaw’s recommendations of speculative private placements were unsuitable for customers. The AWC stated that the risk of customers’ investments had been intentionally misrepresented by Shaw to induce purchases, which resulted in Shaw accumulating $56,733.00 in commissions. Shaw’s conduct was found by FINRA to be violative of NASD Rules 2110, 2120, 2310, Securities Exchange Act of 1934 Section 10(b), and Securities and Exchange Commission (SEC) Rule 10b-5.
Guiliano Law Group
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