SEC Sanctions One Oak Capital and Advisor for Improper Conversions to Fee Based Accounts

Posted on February 28th, 2025 at 1:42 PM
SEC Sanctions One Oak Capital and Advisor for Improper Conversions to Fee Based Accounts

From the desk of Jim Eccleston at Eccleston Law

The Securities and Exchange Commission (SEC) has penalized a New York-based registered investment adviser and its veteran adviser for converting brokerage accounts into advisory accounts that resulted in significantly higher fees without providing additional services.

Michael DeRosa, 75, and One Oak Capital Management improperly switched more than 180 client accounts between June 2020 and October 2023, according to the SEC settlement. AdvisorHub reports that many of these clients were elderly, longtime customers who previously paid commissions per trade. After the conversion, they faced substantially increased costs, sometimes paying up to seven times more in fees, despite conducting little to no trading for over a year.

According to AdvisorHub, the SEC determined that One Oak and DeRosa violated their fiduciary duty by prioritizing their own financial interests over those of their clients. The firm was ordered to pay a $150,000 civil penalty, while DeRosa agreed to a $75,000 fine and a nine-month suspension. Additionally, DeRosa must retain an independent compliance consultant to review the firm’s policies and procedures.

The SEC’s findings showed that DeRosa and One Oak collected approximately $268,000 in advisory fees from the affected accounts. AdvisorHub also reports that, in some cases, DeRosa allegedly had clients authorize the conversions without fully disclosing the new fee structure.

 

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

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next

Thank you for your professional assistance with this matter. You are very good at what you do.

John T.

LATEST NEWS AND ARTICLES

November 7, 2025
FINRA Suspends Former Wells Fargo Broker Over Unapproved Real Estate Venture

The Financial Industry Regulatory Authority (FINRA) suspended former Wells Fargo broker George J. Cairnes for four months and fined him $25,000 for engaging in unapproved real estate outside business activity, according to a settlement letter issued.

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.