California Securities Fraud Attorney Call Today 800-699-1881
California Securities Fraud Lawyer Firm Overview Attorney Profiles Recoveries Obtained Frequently Asked Questions Testimonials Contact Us
information center
Attorney Advertising Disclaimer
Broker Misrepresentation
Brokerage Firms Sued
Structured Products
Hedge Fund Losses
Recognizing Investment Losses
Recovery of Investment Loss
Securities Arbitration
Reverse Convertible
Securities Fraud
Securities Mediation
Securities Litigation
Stock/ Investment Losses
Suitability/ Unsuitability
Unauthorized Trading
Common Claims
Frequently Asked Questions
Attorney Referrals
Video Center
securities fraud blog
legal blog Click here for a free case evaluation. Read our Articles on Securities Related Issues here. have a question resources
contact us
Are you a new client?
10 Avvo avvo badge
If you need help recovering your losses contact us today. View our complete list of brokerage firms and banks we've sued.

Michael Douglas Venable Barred for Multiple Violations Related to Sales of ETFs

When the Financial Industry Regulatory Authority (FINRA) announced its intention to bring cases against brokers and their firms who have sold customers unsuitable leveraged and inverse exchange-traded funds (ETFs) or exchange-traded notes (ETNs), it followed up with the barring of registered representative Michael Venable of Texas for selling clients unsuitable investments in leveraged ETFs.

FINRA Case #210021688101

Because leveraged ETFs can be highly volatile securities, they are more suitable for day-to-day professional investors than long-term customers. Nonetheless, FINRA found that Venable continually recommended the highly speculative Direxion ETFs to multiple customers whose ages ranged from 40 to 91 years old and who were long-term customers rather than day-to-day speculative traders. The specific products he recommended and sold were:

  • Direxion Daily Financial Bull 3X Shares ("FAS");
  • Direxion Daily Financial Bear 3X Shares ("FAZ");
  • Direxion Energy Bull 3X Shares ("ERX");
  • Direxion Daily Small Cap Bear 3X Shares ("TZA") and
  • Direxion Daily Cap Bull 3X Shares ("TNA").

Furthermore, Venable was found to have attempted to compensate for his improper recommendations by engaging in excessive trading of customer accounts, thereby driving up his own commission while failing to maximize his customers' returns.

Venable had engaged in these unauthorized and prohibited practices while associated with the firm Morgan Keegan & Company, Inc., though his employment was terminated on April 15, 2010. He has not been employed in the securities industry ever since and now that FINRA has barred him, Venable is prohibited from returning.

If you suspect a broker or firm has engaged in unsuitable or improper practices that have proven harmful to your investments or interests, call The Law Offices of Jonathan W. Evans & Associates at 800-699-1881 for a consultation.

Categories: ETFs, Discipline, Suitability
The Law Offices of Jonathan W. Evans & Associates - California Securities Fraud Attorney
Located at 12711 Ventura Boulevard, Suite #440 Studio City, CA 91604. View Map
Phone: (800) 699-1881 | Local Phone: (818) 760-9880.