Haselkorn & Thibaut, a national investment fraud law firm, has opened an investigation into former Raymond James & Associates financial advisor Michael Edwin Magruder (CRD# 4579211) regarding potential investor claims. If you invested with Mr. Magruder during his time at Raymond James or his previous firms, you may have important rights to recover losses.
Understanding Michael Magruder’s Background
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Michael Edwin Magruder spent over two decades in the financial services industry, most recently working with Raymond James & Associates in Orlando, Florida from July 2021 through August 2024. His career path included positions at several major brokerage firms, giving him extensive experience but also raising questions about his frequent moves between companies.
Currently, Mr. Magruder is not registered with any FINRA-member firm, which means he cannot legally conduct securities transactions or provide investment advice. This change in status often signals underlying issues that investors should understand.
Complete List of Customer Complaints and Red Flags
According to FINRA BrokerCheck records, Michael Magruder has five customer complaints on his record, with four resulting in monetary settlements. Here’s what investors need to know:
| Date | Alleged Damages | Settlement | Key Issues |
|---|---|---|---|
| May 2024 | $450,000 | $400,000 | Unsuitable investments |
| March 2024 | $325,000 | $275,000 | Misrepresentation |
| October 2019 | $205,000 | $35,000 | Breach of fiduciary duty |
| March 2019 | $1,400,000 | $100,000 | Unauthorized trading |
| November 2018 | $75,000 | Denied | Unsuitable recommendations |
Why These Complaints Matter to Investors
The pattern of complaints against Michael Magruder reveals several concerning trends that investors should understand:
- Unsuitable Investment Recommendations: Multiple complaints allege that Mr. Magruder recommended investments that didn’t match clients’ risk tolerance, investment objectives, or financial situations. This suggests a pattern of prioritizing commissions over client interests.
- Misrepresentation of Investment Risks: When advisors fail to accurately explain investment risks, clients make decisions based on incomplete or false information, potentially leading to significant losses.
- Breach of Fiduciary Duty: Financial advisors have a legal obligation to act in their clients’ best interests. Allegations of breaching this duty indicate serious misconduct.
- Unauthorized Trading: Perhaps most concerning, one complaint alleges unauthorized trading activity, which represents a fundamental violation of investor trust and securities regulations.
Red Flags Investors Should Recognize
Several warning signs emerge from Michael Magruder’s regulatory record:
1. Escalating Complaint Pattern
The most recent complaints in 2024 involved substantially higher alleged damages ($450,000 and $325,000) compared to earlier complaints, suggesting potentially more aggressive misconduct.
2. High Settlement Amounts
The $400,000 and $275,000 settlements in 2024 represent significant sums, indicating the firms took these allegations seriously enough to pay substantial amounts to resolve them.
3. Multiple Firms Involved
Complaints span across different employers, suggesting the issues weren’t isolated to one firm’s supervision or culture.
4. Recent Departure from the Industry
Mr. Magruder’s exit from Raymond James in August 2024, shortly after major settlements, raises questions about whether his departure was voluntary or encouraged by the firm.
What This Means for Your Investments
If you worked with Michael Magruder, especially during his time at Raymond James from 2021-2024, you should carefully review your account statements and investment performance. Pay particular attention to:
- Investments that seemed inconsistent with your stated goals
- Transactions you don’t remember authorizing
- Losses that seem excessive compared to market conditions
- Complex products you didn’t fully understand
- Frequent trading that generated high commissions
Your Rights as an Investor
Securities laws provide strong protections for investors who suffer losses due to broker misconduct. You may be entitled to recover losses if you experienced:
- Unsuitable investment recommendations
- Misrepresentation or omission of material facts
- Unauthorized trading in your account
- Breach of fiduciary duty
- Excessive trading (churning)
Even if you’re unsure whether misconduct occurred, speaking with an experienced securities attorney can help clarify your situation and potential options.
Time Limits Apply to Your Claims
Important: Securities claims have strict time limits. FINRA arbitration claims typically must be filed within six years of the misconduct. Waiting too long could mean losing your right to recover losses, even if you have a valid claim.
Why Choose Haselkorn & Thibaut
With over 50 years of combined experience, Haselkorn & Thibaut has helped investors nationwide recover millions of dollars from investment fraud and broker misconduct. Our firm maintains a 98% success rate in securities arbitration and operates on a “No Recovery, No Fee” basis, meaning you pay nothing unless we recover money for you.
Get Your Free Consultation Today
If you invested with Michael Magruder at Raymond James or any of his previous firms, don’t wait to explore your options. The experienced securities attorneys at Haselkorn & Thibaut can review your situation at no cost and help you understand your rights.
Call Haselkorn & Thibaut today at 1-888-885-7162 for your free, confidential consultation.
Our national investment fraud lawyers are ready to help you understand your options and fight for the recovery you deserve. With offices nationwide and a proven track record of success, we’re here to help you move forward with confidence.
