FINRA has suspended Michigan broker Harvey Alan Brode for two months and fined him $5,000 after determining that his mutual fund switch recommendations left 63 retail customers paying roughly $170,000 in avoidable front-end sales charges.
What happened
Brode, CRD# 31169, signed a Letter of Acceptance, Waiver, and Consent, AWC No. 2025088487601, which FINRA accepted on September 29, 2026. The settlement resolves findings that he willfully violated the Care Obligation of Regulation Best Interest between June 30, 2020, and May 10, 2024.
The suspension runs from October 20, 2026, through December 21, 2026, in all capacities. Brode is not currently registered with any firm, according to his public BrokerCheck report.
Key facts in the Brode case
| Item | Detail |
| Broker | Harvey Alan Brode, CRD# 31169, Farmington, Michigan |
| AWC number | 2025088487601, accepted September 29, 2026 |
| Conduct period | June 30, 2020 through May 10, 2024 |
| Customers affected | 63 retail customers |
| Switch recommendations | 108 occasions |
| Principal value | $5.9 million |
| Sales charges paid | Approximately $170,000 |
| Sanctions | Two-month suspension in all capacities plus a $5,000 fine |
| Rules cited | SEC Regulation Best Interest, Rule 15l-1; FINRA Rule 2010 |
How mutual fund switching drains accounts
According to the settlement, Brode recommended that retail customers sell Class A mutual funds and then purchase new Class A funds that imposed a fresh front-end sales charge. He failed to consider whether the customers could have met the same objective by exchanging into a new fund within the same fund family, which would not have required a new sales charge.
The figures tell the story. Across 108 switch recommendations involving $5.9 million in principal, customers paid about $170,000 in front-end sales charges. That averages out to nearly 3 percent of the money moved, paid to reposition holdings the customers already owned in similar form.
Brode’s registration history
| Firm | CRD# | Location | Dates |
| Securities America Inc. | 10205 | Farmington, MI | 06/2014 – 06/2024 |
| Osaic Wealth Inc. | 23131 | Farmington, MI | 06/2024 – 08/2026 |
| Park Avenue Securities LLC | 46173 | Southfield, MI | 07/2026 – 10/2026 |
The misconduct period overlapped almost entirely with his tenure at Securities America. BrokerCheck lists 57 years of industry experience for Brode and two disclosure events initiated by FINRA.
The firm repaid the fees
BrokerCheck records state that Brode’s member firm has repaid its customers the front-end sales charges that resulted from his switch recommendations. That repayment matters to the affected account holders.
It does not answer the supervisory question. One hundred and eight switch recommendations across nearly four years formed a pattern that supervision should have surfaced long before the settlement.
Red flags for mutual fund investors
- Statements showing repeated purchases of new Class A funds shortly after sales of similar funds.
- Recommendations that move money between different fund families instead of using exchange privileges within one family.
- Frequent upgrade ideas that always require buying a new product with a new sales charge.
Investors can ask two direct questions before any switch: does an exchange privilege exist within the current fund family, and exactly what will the new purchase cost in front-end charges?
What investors should do now
Customers who paid avoidable sales charges should confirm in writing what the firm repaid and whether interest was included. Anyone still holding switched positions should request a full trade history and match each sale against its replacement purchase.
Investors who believe they suffered further harm, such as tax consequences or lost performance, may still have claims beyond the repaid fees. Filing deadlines under FINRA arbitration rules and state law can be short.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
Time matters in mutual fund fee recovery cases. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
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