Michael Corrada: Allegations of Financial Misconduct

Michael Corrada, a former broker with Coastal Equities, faces allegations that showcase the potential for wrongful practices in the brokerage industry. Over the last couple of decades, his record has drawn negative attention from clients and regulators alike. Many concerns focus on claims that his investment recommendations did not match clients’ goals or risk tolerance. These controversies highlight why thorough background checks and strong oversight can help protect investors.

If you or someone you know has been impacted by Michael Corrada or another broker, don’t hesitate to reach out to Meyer Wilson today. Our attorneys are experienced in broker misconduct cases and will help to guide you through the process with a free consultation.

Details of Michael Corrada Allegations

Scope and Extent of the Complaints

Allegations against Michael Corrada (CRD#: 709158) involve recommending unsuitable investments, failing to perform adequate research, and withholding key risk information. Some complaints center on corporate bonds, closed-end funds, and alternative products—securities that can be risky if not properly vetted. Clients have claimed financial harm and pointed to repeated patterns of misrepresentation across multiple years.

Below is a breakdown of his key reported disputes and settlements:

• April 2009: Complaint for failing to disclose junk bonds in a closed-end fund that had nearly $64,000 in damages requested and settled.

• April 2010: Alleged misrepresentation and unsuitability of an investment, with nearly $100,000 in damages requested. The case settled.

• August 2011: Customer dispute involving unsuitable RMK funds and inadequate supervision with over $450,000 in damages requested. This case also settled.

• April 2022: A complaint submitted in April 2022 settled for $255,000 over an unsuitable corporate bond.

• September 2023: A client alleged unsuitable investments, ending in a $25,000 settlement.

• November 2024: A newly pending dispute claims further unsuitable investments.

• January 2025: The newest complaint alleges further unsuitable investments, with $200,000 in damages requested.

Potential Client Losses and Investment Fraud Impact

Many of these settlements and pending complaints reflect large investor losses. Some issues involve high-risk or illiquid instruments—such as certain corporate bonds or closed-end funds—that may not align with an investor’s financial profile. When advisors fail to match investments to a client’s objectives, they can violate suitability obligations, which typically encompass three principles:

• Reasonable Basis Suitability: Brokers must understand a product’s features and risks before recommending it.

• Quantitative Suitability: Advisors should avoid excessive trading or repetitively high-risk transactions that do not benefit the client’s best interests.

• Customer-Specific Suitability: Recommendations must reflect each client’s age, risk tolerance, liquidity needs, and financial goals.

In addition, recent rules under Regulation Best Interest (Reg-BI) impose an even higher standard for brokers advising retail customers. Violations can lead to client complaints, regulatory sanctions, and costly settlements. These challenges also point to possible lapses in supervision at the firms where Corrada worked, raising broader concerns about oversight within the financial advisory sector. Check out our video below for more information on Reg-BI:

Michael Corrada’s Background and Industry Rules

Corrada’s Career with Coastal Equities and Other Firms

Corrada worked with firms like Coastal Equities, Center Street Securities, Centaurus Financial, and SunTrust Investment Services during his time as a broker and investment adviser. Public records indicate he is no longer registered as a broker or investment advisor, meaning he is currently not authorized to offer securities-related services through FINRA-regulated firms. His operation out of these firms suggests that they could have allowed other forms of oversight to slip past them, raising concerns about investors with these firms.

FINRA Rule 3110 requires brokerage firms to establish and maintain a system that properly supervises their representatives, ensuring that they stay within suitable guidelines when recommending investment products. If a pattern of complaints emerges over time, it can point to inefficiencies or failures within the firm’s supervision and compliance structures.

Meyer Wilson Helps Victims of Brokers Like Michael Corrada

The allegations against Corrada illustrate a pattern of complaints and settlements spanning from 2008 through 2024, involving closed-end funds, corporate bonds, and alternative investments. When brokerage supervision falters or financial advisors make unsuitable recommendations, investors can face lasting losses.

If you or someone you know has suffered losses due to the actions of brokers like Michael Corrada, the experienced attorneys at Meyer Wilson are here to help. With more than 20 years in the industry and over $350 million recovered for our clients, our focus on investment fraud and securities litigation has helped many investors recover their losses. Contact us today for a free consultation to discuss your case and learn how we can assist you in protecting your financial interests.

Frequently Asked Questions

What are the allegations against Michael Corrada?

He faces multiple accusations of recommending unsuitable investments and failing to disclose risks. His previous complaints include allegations of pushing corporate bonds, closed-end funds, and alternative investments that did not align with clients’ financial needs.

How can I check a financial advisor’s background?

You can use FINRA’s BrokerCheck tool. Here is a simple step-by-step guide:

1. Go to the official BrokerCheck website.

2. Enter the advisor’s name or CRD number.

3. Review employment history and disciplinary disclosures for any red flags.

4. Look for patterns of complaints or settlements that raise concern.

How do I recover losses from unsuitable recommendations?

Investors often pursue recovery through arbitration or direct settlement with the broker-dealer. Evidence of unsuitable advice, such as a mismatch between your financial profile and the recommended product, can strengthen your claim for possible restitution.

What is FINRA arbitration and how does it work?

FINRA arbitration is a dispute resolution process where investors present claims against brokers or firms. A panel evaluates each side’s arguments and evidence, then decides if compensation is due. Arbitration rulings are typically binding, providing a structured way to resolve financial harm without going to court.