Fidelity Advisor Files Lawsuit Alleging Wrongful Termination Over Whistleblowing

Posted on May 17th, 2024 at 11:41 AM
Fidelity Advisor Files Lawsuit Alleging Wrongful Termination Over Whistleblowing

From the desk of Jim Eccleston at Eccleston Law 

A former Fidelity Investments advisor, Michael Maeker, has initiated legal action against his former firm, alleging wrongful termination in response to his reporting of anti-investor sales tactics.

AdvisorHub reports that according to the complaint, Fidelity fired Maeker after disclosing evidence indicating that Fidelity incentivized branch managers and advisors to steer clients into higher-revenue-generating investments. Those alleged actions, spanning from 2019 to 2023, purportedly violated state securities laws and the Securities and Exchange Commission's Regulation Best Interest, which mandates prioritizing client interests.

Maeker asserts that Fidelity's practices included using compensation incentives and threats to coerce advisors into recommending "Tier 3" investments, which yielded higher revenue for the firm. Managers allegedly utilized "Hero" reports to reward brokers and managers based on their sales of these investments, creating a culture that prioritized financial gain over client welfare.

AdvisorHub also reports that the lawsuit claims that Maeker's manager dismissed objections to the practices. Despite Maeker's efforts to address his concerns internally, he was terminated in December 2022, with Fidelity alleging misconduct related to client interactions and tool usage.

Fidelity contends that Maeker's termination was justified, citing misrepresentations and improper use of planning tools. However, Maeker denies those allegations, asserting they were fabricated to discredit him.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

The work that you and your team have performed on my behalf is exemplary.

JT

LATEST NEWS AND ARTICLES

November 6, 2025
Former Ameriprise Broker Ordered to Pay $2.2 Million for Elder Exploitation

A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered Eric A. Dupre to pay nearly $2.2 million in damages to his former firm and two customers following allegations of theft and elder exploitation.

November 5, 2025
Former Wells Fargo Representative Suspended for Unauthorized Texting and Obstruction

The Financial Industry Regulatory Authority (FINRA) has suspended former Wells Fargo representative Eyan M. Townsend for one year and fined him $10,000 for using personal text messages to conduct business and attempting to obstruct an internal investigation by deleting those communications.

November 4, 2025
FINRA Suspends Former Morgan Stanley Advisor Over $180,000 in Improper Transfers

The Financial Industry Regulatory Authority (FINRA) suspended former Morgan Stanley advisor C.J. Kline for two years and imposed a $5,000 fine for allegedly executing more than $180,000 in improper fund transfers between his personal and brokerage accounts.