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

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

August 15, 2025
FINRA Bars Former Ameriprise Advisor Over $2.2 Million in Client Loans

The Financial Industry Regulatory Authority (FINRA) has permanently barred former Ameriprise Financial broker Eric A. Dupre for borrowing more than $2.2 million from clients without firm authorization.

August 14, 2025
Florida Investment Advisor Accused of Orchestrating $94 Million Fraud Targeting International Clients

Federal prosecutors have charged Andrew Hamilton Jacobus, a former investment adviser based in Fort Lauderdale, Florida, with defrauding international investors of over $94 million over 20 years.

August 13, 2025
FINRA Suspends Financial Advisor for Outsourcing Continuing Education Requirements

The Financial Industry Regulatory Authority (FINRA) has suspended advisor Francis G. Smith for one month and fined him $5,000 after finding he had someone else complete required continuing education (CE) coursework on his behalf.