Financial Advisor Michael Shatsky has been the Subject of Six Customer Complaints

• March 21, 2025
• Sky Alpha Asset Advisors

Michael Jay Shatsky (CRD#:2430683) is a registered investment advisor with Sky Alpha Asset Advisors, LLC in Boca Raton, FL. He was also a previously registered broker.

Broker’s History

He entered the securities industry in 1994 and previously worked with Citigroup Global Markets Inc.; Morgan Stanley, and Oppenheimer & Co., Inc.

Current and Past Allegations of Conduct Leading to Investment Loss

According to publicly available records released by the U.S Securities and Exchange Commission (SEC),  in June of 2024, Michael Shatsky became the subject of a customer dispute where Claimants alleged that, “IAR did not accurately represent all material facts about their investment account and did not reasonably manage the account in 2020 and 2021.” The damage amount requested was $788,000.00 and the customer dispute is still pending.

In addition, Michael Shatsky has been the subject of five other customer complains, including:

• January 2022—“Clients alleged that they experienced damages by the breach of fiduciary duty, intentional and negligent misrepresentations, and gross mismanagement of an options trading strategy implemented by Mr. Shatsky from 2017 to 2021. Claims were settled to avoid further litigation.” The damage amount requested was $1,700,000.00 and the customer dispute settled for $310,000.
• April 2019—“Client alleged that Mr. Shatsky mismanaged and misrepresented a particular options trading strategy that was being conducted on the client’s account. The claim was settled to avoid further litigation costs.” The customer dispute settled for $70,000.00.
• February 2009—“THE CLIENT’S AGENT ALLEGED UNSUITABILITY WITH RESPECT TO VARIABLE ANNUITY 12/2004. DAMAGES UNSPECIFIED. The customer dispute was denied.
• December 2002—“FAILURE TO FOLLOW INSTRUCTIONS AND NEGLIGENCE. JUNE 2002.” The damage amount requested was $5,500.00 and the customer dispute was withdrawn.
• December 1999—“REQUEST FOR MEDIATION SEEKING TO SURRENDER ANNUITIES WITHOUT INCURRING FEES OR CHARGES.” The damage amount requested was $5,001.00 and the customer dispute was closed-no action.

For a copy of Michael Shatsky’s SEC AdvisorInfo, click here.

We Help Investors Recover Investment Losses

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

Excessive trading often occurs when a Financial Advisor puts his or her interests ahead of the clients and makes transactions solely for the purpose of generating commissions. Financial Advisors have a regulatory duty to recommend suitable investment strategies. One of the components of the suitability analysis is quantitative suitability.

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation. Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.