Michael Lee Bullock of Securities America, Inc. in Calabasas, California

Michael Lee Bullock is currently a registered principal of Securities America, Inc. in Calabasas California, and has been with the firm since 1990. The job of the registered principal is to oversee operations and compliance for securities firms. In April 2009, both FINRA and the National Association of Securities Dealers (“NASD”) announced Bullock was to be fined $50,000, barred him from contact with any FINRA member for six months, and then suspended him from acting as principal for an additional six months.
 
According to FINRA, the penalty stems from an arrangement in 2002 and 2003 Bullock had with an investing company that wasn’t his employing firm, Securities America. Bullock allegedly cashed a $20,807.32 check from the investing company in exchange for promising to sell their securities, which was a violation of NASD conduct rules. He then concealed from his employing firm that he had received those funds, and made misrepresentations regarding his clients while being investigated by FINRA.
 
Secret commission deals struck between registered brokers and mutual fund companies, also known as “step-out” commissions, have come under scrutiny by FINRA regulators since 2003. Bullock is currently appealing FINRA’s latest decision, which would force him to re-register as a principal after his suspension has been served.
 
We are currently investigating Mr. Bullock.  If you or an organization with which you are affiliated have entrusted your money to Mr. Bullock, we would like to hear from you.
 
FURTHER READING
 
In April 2009, NASD suspended Michael Lee Bullock for six months, barring him from working with any registered firm during that time. The NASD issued the following report regarding disciplinary actions relating to Michael Lee Bullock:
 
Michael Lee Bullock (CRD #35037, Registered Principal, Westlake Village, California) was fined $50,000, suspended from association with any FINRA member in any capacity for six months, suspended from association with any FINRA member in any principal capacity for six additional months, to run consecutively with the suspension in any capacity, and ordered to requalify as a principal before acting in a principal capacity. The sanctions were based on findings that Bullock accepted directed brokerage payments, accepted payments directly from an investment company (someone other than the member firm with which he was associated) and made misrepresentations to a customer. The findings stated that Bullock accepted a $20,807.32 payment directly from the investment company, failed to notify his firm that he had received the payment, and also failed to notify his firm that he had received double payment after his firm paid him commissions for the same amount. The findings also stated that Bullock failed to disclose the directed brokerage arrangement and potential bias to his clients, and that his failure to disclose was deceptive because he was advising his clients on the selection of mutual funds. The findings also stated that Bullock made material misrepresentations to one of his clients in response to requests for information. This decision has been appealed to the NAC. The sanctions are not in effect pending consideration of the appeal. (FINRA Case #2005003437102)
 
 
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