FINRA Complaint: Florida Broker Charged With Unsuitable Investment Recommendations
Michael Charles Grande (CRD No. 1219255) is a previously registered securities broker. From November of 2005 to May of 2022, Mr. Grande was a registered representative of Newbridge Securities Corporation in Fort Lauderdale, Florida. FINRA has filed a complaint against his financial advisor (Disciplinary Proceeding No. 2018060128401). The agency contends that Mr. Grande failed to cooperate with an investigation into allegations that he made unsuitable investment recommendations to customers. Here, our Miami unsuitable investment attorney discusses the allegations raised against the broker.
FINRA Complaint: Former Newbridge Securities Corporation Broker Michael Grande
In May of 2022, former FINRA broker Michael Charles Grande left his position at Newbridge Securities Corporation in Fort Lauderdale, Florida. The broker-dealer filed a Uniform Termination Notice for Securities Industry Registration (U5 Form) indicating that Mr. Grande voluntarily resigned. Notably, the resignation was related, in part, to allegations involving potential unsuitable investments recommendations regarding short-term trading of mutual funds. FINRA launched its own investigation into the conduct of this broker. However, in violation of FINRA Rule 8210, Mr. Grande reportedly failed to cooperate with the agency’s investigation. He declined to provide the requested documents and the requested on-the-record testimony.
Understanding FINRA Regulations
FINRA has regulations in place that are designed to help protect the rights and interests of investors. There are several FINRA rules that are at issue in this case, including:
- FINRA Rule 2111 (Suitability): FINRA Rule 2111 requires that brokers must have a reasonable basis to believe a transaction or investment strategy is suitable for the customer. It should be based on the information obtained through reasonable diligence. The rule requires brokers and broker-dealers to take into account the customer’s investment profile, which includes their age, financial situation, tax status, and their investment objectives.
- FINRA Rule 8210 (Records and Testimony): FINRA Rule 8210 empowers the organization to require brokers, brokerage firms, and associated persons to provide documents, information, and testimony related to any FINRA investigation, complaint, or proceeding.
- FINRA Rule 2010 (Commercial Honor): FINRA Rule 2010 mandates that all members must conduct their business with high standards of commercial honor and just and equitable principles of trade. The rule serves as a broad ethical guideline that is intended to promote fairness and honesty in the securities industry. It is sometimes referred to as a “catch-all” rule to hold brokers and broker-dealers accountable.
Agency is Seeking All Appropriate Sanctions
As part of its investigation, FINRA is seeking all appropriate sanctions against former Newbridge Securities Corporation broker Michael Grande. Among other things, the agency is seeking:
- Findings that this broker committed the alleged violations;
- The imposition of monetary sanctions; and
- Any other penalties deemed warranted.
Get Help From Our Unsuitable Investment Recommendation Attorney Today
At Carlson & Associates, P.A., our Miami unsuitable investment lawyer is standing, ready to help. If you or your family member suffered losses due to unsuitable investment recommendations, we are here to help. Contact us today for a completely confidential case review. With an office in Miami, our attorneys have extensive experience handling unsuitable investment cases.
Source:
brokercheck.finra.org/individual/summary/1219255