FINRA suspends Michigan broker Harvey Brode over .9 million mutual fund switching

FINRA suspends Michigan broker Harvey Brode over $5.9 million mutual fund switching

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.

Offices in Florida, New York, Arizona, Texas, and North Carolina. Former Wall Street defense attorneys with 95+ years of combined experience. No recovery, no fee.

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