Complaint Review: Olympia Asset Management
Olympia Asset Management Mike Murphy Olympia Capital Markets scam, rosecliff capital scam, olympia asset management scam, Mike Murphy fraud New York New York
*Author of original report: Olympia Capital Markets is now Newport Advisors
Your account will be churned, your money may be laundered, or even stolen by Murphy himself or one of his office cronies. Here is how Murphy built Olympia Asset Management and the stuff that Murphy doesn't want you to know or understand. Murphy's uses the series 7 process which requires a new broker to be sponsored and exploits it by taking a guy off the street who wants to work on Wall Street who isn't licensed, put a script in front on him and get him to cold call Dunn and Bradstreet high net worth leads hundreds of times per day and get unsophisticated investors to open account usually for zero commission.
The cold caller is promised series 7 sponsorship for his efforts. Its a great deal for the firm as the firm pays the caller minimum wage while all new accounts the cold caller opens Murphy keeps for himself. If the caller leaves his desk or does so much as complain for a nanosecond is ordered with hostility by Murphy or one of his managers to "get on the phone!" I did it for two months and I am telling you it feels like working in a modern day sweatshop without the benefit of actually producing anything tangible or of any value.
The script involves repeating the same pitch over and over again that goes something like this..."tell me you remember me...we spoke in August and I recommended (such and such) security...well Ill have you know that the stock went from 30-45 in 6 weeks (of course this is all a lie and made up just to get the clients attention). Now here's what I'm working on now..." The script does on in an attempt to get the client to open an account for 100 shares of a stock for zero commission...there's a fedex mailer delivered to the client with paperwork to complete and return instructions on sending in new money using @ $3000 in exchange for 100 shares of $30 stock.
Once an unsuspecting new client does open an account, he can expect future solicitations for much riskier trades and much higher dollar amounts and hefty 2-3 percent commissions taking right off the top. I can tell you from working at the firm that there is nothing special or unique about any research coming out of this firm. Murphy simply purchases Investment banking reports discussing future intended upgrades or downgrades and recommends stocks accordingly.
In fact the trades Olympia will put a client into carry substantial risk and there is no suitability conducted other than client net worth. The client can also expect future churning in the account (unsolicited trading without client consent) intended to generate commissions. From the employee perspective, Olympia thrives on high broker turnover meaning it somehow gets to keep accounts generated by newbies "blood sweat and tears" on the phone only to reassign those accounts to Murphy's favorites himself.
Olympia is to be avoided at all costs both from the client perspective and employee standpoint. If you are thinking of opening an account there, or have been contacted by a broker at the firm, you should hang up immediately and contact the SEC (877) 442-0854 as the company has faced countless fines for wrongdoing in client accounts dating back to 2002. The firm also makes political contributions and seems to pay periodic incremental fines in exchange for being allowed to continue its business. If you are a prospective broker, run...don't walk out the door and you will save yourself career trauma by going to work for a more reputable firm such as a wire house with a reputation strong enough so you don't have to help Murphy build his own fledgling brand in "Olympia."
Update: Mike Murphy is now a regular on CNBC fast money. He has started a Hedge fund called Rosecliff capital. Murphy has also just sold an expensive NYC apartment no doubt using proceeds from his illicit activities at Olympia Capital Markets Group.
This report was posted on Ripoff Report on 01/05/2013 08:28 AM and is a permanent record located here: http://www.ripoffreport.com/reports/olympia-asset-management/new-york-new-york-10019/olympia-asset-management-mike-murphy-olympia-capital-markets-scam-rosecliff-capital-scam-991713. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content
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