Broker From Florida Suspended, Fined for Securities Law Violations Involving Municipal Bonds
Thomas McClure Mead Jr. (CRD #330666) is a previously registered securities broker. He is listed by the Financial Industry Regulatory Authority (FINRA) as a resident of Vero Beach, Florida. Most recently, Mr. Mead Jr. was a registered representative of Drexel Hamilton, LLC (December 2010 to December 2023). FINRA recently announced enforcement action against this broker. He was fined and suspended for securities misconduct related to municipal bonds. Here, our Miami investor protection lawyer discusses the FINRA enforcement action in more detail.
Understanding Municipal Bonds as an Investment Opportunity
A municipal bond is a debt security issued by a state, city, county, or other local government entity to finance public projects like roads, schools, and infrastructure. A key feature of municipal bonds is their unique tax treatment. Investors who purchase municipal bonds typically receive tax-exempt interest income. That can make them an attractive option for those seeking tax-advantaged returns. Although municipal bonds certainly have the potential to be sensible investment opportunities for investors, the reality is that every investor has unique goals, needs, and financial circumstances. Brokers have a responsibility to ensure that investments are suitable for their clients. There is no such thing as a truly risk-free investment.
FINRA Enforcement Action: Drexel Hamilton and Four Registered Representatives
In late 2024, FINRA took enforcement action against Drexel Hamilton, LLC and four of its registered representatives: Frederick Phelan, David Steigerwald, Michael Ivcic, and Florida resident Thomas McClure Mead, Jr. Notably, Mr. Mead Jr. was the former Municipal Securities Principal of the brokerage firm. Drexel Hamilton, LLC is a brokerage firm headquartered in New York, New York that is licensed to operate in 41 states and territories, including in Florida.
A FINRA investigation revealed that between January of 2016 and August of 2018, Drexel Hamilton, LLC participated in municipal bond offerings and improperly submitted at least 572 orders as “retail” without a valid basis. Some orders had zip codes unrelated to retail customers which made them appear as eligible even though they were not. Notably, these actions violated MSRB Rules G-11(k) and G-17. FINAR determined that the firm failed to establish a property supervisory system.
Broker Sanctions Against Thomas McClure Mead Jr. Formerly of Drexel Hamilton
Without admitting or denying any wrongdoing in this case, former Drexel Hamilton securities broker Thomas McClure Mead Jr. consented to FINRA’s proposed penalties. He accepted a $15,000 fine and six month suspension from operating in any principal capacity with a broker-dealer. The suspension started in December of 2024 and is set to last until June 1st, 2025.
Consult With Our Miami, FL Investment Losses Attorney Today
At Carlson & Associates, P.A., our Miami investment fraud attorney fights tirelessly to help clients get justice and financial compensation. If you suffered losses because of misconduct by a broker or brokerage firm, we are here to help. Contact us today for a fully confidential, no obligation initial consultation. Our firm protects the rights of investors throughout all of South Florida.
Source:
brokercheck.finra.org/individual/summary/330666
