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.
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