Michael Shatsky (CRD#: 2430683), an investment adviser with Sky Alpha Asset Advisors, has been accused of misrepresenting an investment to one of his clients. This case emphasizes the serious issues of misrepresentation and breach of fiduciary duty within the financial advisory industry.
Allegations of Misrepresentation, Mismanagement, and Breach of Fiduciary Duty
Recent Complaints and Legal Proceedings
Michael Shatsky, a Boca Raton, Florida-based investment adviser, has recently faced a major investor complaint. The complaint, filed in June 2024, alleges that Shatsky, acting as a representative of Sky Alpha Asset Advisors, misrepresented material facts and failed to manage a customer’s account appropriately. This pending complaint seeks damages totaling $788,000.
This case underscores the challenges investors face when dealing with potential misrepresentation. Such matters often hinge on careful examination of documentation and communication between advisor and client. This wasn’t Shatsky’s first time caught in a customer dispute. According to his Investment Adviser Public Disclosure (IAPD) report, a few others include:
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January 10, 2022: Michael Shatksy was alleged to have breached his fiduciary duty, intentionally misrepresented a product, and mismanaged an options trading strategy. The damage amount requested was for $1.7 million, and the case settled.
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April 25, 2019: Michael Shatksy was alleged to have misrepresented and mismanaged an options trading strategy. The damage amount requested was for $70,000, and the case settled.
Analysis of Misrepresentation and Breach of Fiduciary Duty
The allegations against Michael Shatsky prompt essential questions about what constitutes a breach of fiduciary duty and misrepresentation within the financial advisory field. Investment advisers are legally obligated by a fiduciary duty to act in their clients’ best interests. This duty requires advisers to prioritize their clients’ needs above their own, avoid conflicts of interest, and maintain transparency in all dealings.
Advisers must recommend investment options that genuinely align with their clients’ financial goals and risk tolerance, rather than suggesting investments that benefit the adviser through higher commissions. To prove misrepresentation or breach of fiduciary duty, securities attorneys generally need to demonstrate that the advisor made false statements or omissions of material facts, that these misrepresentations were intentional or negligent, and that they resulted in financial harm.
In Shatsky’s case, the multiple complaints and settlements may suggest a pattern of conduct that could draw scrutiny from regulatory bodies and potentially influence future legal proceedings.
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Investment Adviser Misconduct Options
Investors who suspect they have been victims of financial advisor negligence or misconduct have legal options to pursue recovery of their losses. Our experienced attorneys at Meyer Wilson can help you understand how to prove breach of fiduciary duty and guide you through the process of seeking compensation.
Whether through litigation or arbitration with the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (AAA), or Judicial Arbitration and Mediation Services (JAMS), Meyer Wilson represents clients in holding financial advisors accountable for their actions. Cases like those against Michael Shatsky demonstrate how legal action can lead to substantial recoveries for wronged investors. Meyer Wilson is here to assist you in understanding your rights and recovering your losses.
Lessons to Learn From Michael Skatsky
The investor complaints against investment adviser Michael Shatsky underscore the serious nature of misrepresentation and breaches of fiduciary duty within the financial advisory industry. These allegations emphasize the importance of accountability and the legal protections available to investors who have suffered losses due to advisor misconduct.
Our firm at Meyer Wilson is dedicated to advocating for investors’ rights and recovering losses caused by fraudulent or negligent financial practices. If you have concerns about your investment adviser or believe you have been a victim of misconduct, reach out to us for a personalized consultation. We are committed to providing the support and legal knowledge necessary to help you manage this challenging situation.
Our lawyers are nationwide leaders in investment fraud cases.
Frequently Asked Questions
What is a misrepresentation?
A misrepresentation refers to a false statement or omission of a fact that a reasonable investor would consider important when making an investment decision. This can include misrepresenting the risks of an investment, overstating potential returns, or failing to disclose conflicts of interest.
What is willful misrepresentation of a material fact?
Willful misrepresentation of a material fact involves the intentional act of providing false or misleading information about a significant aspect of a transaction or decision. In financial advising, this might include:
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Deliberately misrepresenting the risks or expected returns of an investment
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Knowingly omitting critical information that would influence an investor’s decision
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Intentionally mischaracterizing a financial product
Do investment advisers have a fiduciary duty?
Yes, investment advisers have a fiduciary duty to their clients. Registered Investment Advisors (RIAs) are legally required to act as fiduciaries, which means they must prioritize their clients’ best interests at all times. This duty includes providing unbiased advice, fully disclosing all fees and potential conflicts of interest, and recommending investments that are suitable for the client’s specific situation. We wrote about the differences between each of the main types of financial professionals to help you understand what standards each must adhere to.
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