Broker Investigation: Michelle Stebbins – Four Pending Customer Complaints for Alleged Failure to Supervise

The White Law Group is investigating allegations against Michelle  Stebbins (also known as Michelle Christine Gillespie) CRD #4156378, a registered broker and investment adviser currently affiliated with Stifel, Nicolaus & Company, Incorporated (CRD #793) in Southfield and Grand Rapids, Michigan. According to FINRA BrokerCheck, Stebbins has four pending customer disputes, all filed in 2024, alleging failure to supervise.

Stebbins has reportedly been working in the securities industry for 25 years, previously registering with firms including Wells Fargo Clearing Services, Merrill Lynch, and UBS Financial Services before joining Stifel in 2018.

Customer Complaints Involving Michelle Stebbins

FINRA disclosures report the following pending customer disputes:

June 18, 2024 – Pending Customer Dispute

• Allegations: Failure to supervise

• Damage Amount Requested: $400,000

April 10, 2024 – Pending Customer Dispute

• Allegations: Failure to supervise

• Damage Amount Requested: $299,009

April 9, 2024 – Pending Customer Dispute

• Allegations: Failure to supervise

• Damage Amount Requested: $763,004

March 21, 2024 – Pending Customer Dispute

• Allegations: Failure to supervise

• Damage Amount Requested: $305,680

While these disputes remain pending and no findings have been made, the volume and dollar amounts of these complaints may raise questions about potential supervisory issues at Stebbins’ current or prior firms.

What is Failure to Supervise?

FINRA rules require brokerage firms to reasonably supervise the activities of their financial advisors to ensure compliance with securities laws and to protect investors. Failure to supervise claims can stem from:

• Unsuitable investment recommendations

• Excessive trading

• Misrepresentations or omissions

• Improper discretionary trading

• Unauthorized transactions

• Negligent oversight of accounts or investment strategies

In many cases, the firm—not just the broker—can be held liable for customer losses.

FINRA Arbitration vs. Class Action for Investor Recovery

Investors who experience losses due to broker misconduct or supervisory failures typically must pursue claims through FINRA arbitration, the primary forum for resolving disputes between brokers and customers.

FINRA Arbitration

• Mandatory for most customer disputes

• Typically faster than civil litigation

• Decisions are binding

• Allows recovery for losses, fees, and sometimes interest

Class Actions

• Generally not available for claims relating to investment advice or brokerage activity

• Used mainly for securities fraud involving publicly traded companies

For individual suitability, supervision, or misconduct claims, FINRA arbitration is usually the only available path for recovery.

Recovering Investment Losses

If you invested with Michelle Stebbins or another Stifel financial advisor and have concerns about losses or the handling of your accounts, you may have legal options. Brokerage firms are responsible for supervising their representatives, and they may be liable for damages through a FINRA arbitration claim.

The White Law Group has represented hundreds of investors nationwide in claims involving failure to supervise, unsuitable recommendations, and other forms of broker misconduct.

Frequently Asked Questions (FAQs)

1. What does “failure to supervise” mean in a FINRA complaint?

Failure to supervise refers to a brokerage firm’s responsibility to oversee the conduct and recommendations of its financial advisors. If a firm does not adequately monitor trading activity, suitability of investments, or advisor behavior, and investors suffer losses as a result, the firm may be held liable in a FINRA arbitration claim.

2. Can I recover my losses if my advisor has pending customer disputes?

Yes. Even if the complaints are still pending and no findings have been made, investors may still pursue their own claims through FINRA arbitration. Firms like Stifel, Nicolaus & Co. can be held responsible for inadequate supervision or unsuitable investment recommendations.

3. Do I need to participate in a class action to pursue a claim?

No. Most disputes involving brokerage accounts—such as unsuitable investments or supervisory failures—must be brought individually through FINRA arbitration, not through a class action. FINRA arbitration is typically faster and provides an avenue for investors to seek compensation for their specific losses.