Florida Broker Barred By FINRA After Failure to Comply With FINRA Arbitration Award
Michael Edwin Magruder (CRD#: 4579211) is a previously registered financial advisor. From July of 2021 to August of 2024, Mr. Magruder was a registered representative of Raymond James & Associates Inc. in Orlando, Florida. In 2024, an investor filed a complaint against this broker. Eventually, this led to his permanent suspension from the securities industry for the failure to comply with a FINRA arbitration proceeding. Here, our Miami investment fraud attorney discusses the allegations raised against this Florida financial advisor.
Background: Former Raymond James Broker Faced Customer Complaint
As confirmed by FINRA’s BrokerCheck tool, former Raymond James financial advisor Michael Edwin Magruder faced two separate customer complaints in the summer of 2024. In July of 2024, an investor filed a complaint against Mr. Magruder alleging that he made a personal loan to the representative at the request of the representative. That complaint was eventually settled for nearly $190,000. Soon after, this broker faced another customer complaint alleging that the broker “failed to follow the client’s instructions not to sell a specific stock in the customer’s account.” That complaint was also eventually settled for $30,000.
Broker Sanctions: Michael Edwin Magruder (Failure to Comply With FINRA Arbitration)
In October of 2024, the Financial Industry Regulatory Authority (FINRA) took disciplinary action against former Raymond James broker Michael Edwin Magruder for his alleged failure to comply with the terms of a FINRA arbitration award/settlement. The suspension was listed as indefinite—until the required payment(s) are made in full. As ruled by a FINRA arbitration panel in Orlando, Florida, Mr. Magruder reportedly owes Raymond James more than $1.8 million. That money was clawed back by the brokerage firm after Mr. Magruder was terminated for violating the broker-dealer’s rules for obtaining loans from clients.
An Overview of FINRA Rules for Arbitration Award
Most complaints in the securities industry are handled, at least initially, through a FINRA arbitration proceeding. FINRA Rule 9554 is an industry regulation that covers a broker’s failure to comply with the terms of an arbitration award. Under FINRA Rule 9554, a broker can be suspended or outright barred for the failure to pay an arbitration award, a settlement agreement related to arbitration or mediation, or a FINRA fee. There is a 21-day rule. Once an arbitration award becomes final, the respondent (broker or firm) generally has 21 days to pay it. If they do not pay—or at least enter into a satisfactory payment plan—FINRA can initiate a notice of suspension under Rule 9554. A broker can avoid suspension if they can demonstrate that a full payment has been made, a valid installment agreement is in place, and a bankruptcy petition has been filed, or a court has vacated or stayed the award. If the broker fails to respond or satisfy the debt within the specified time, they can be permanently barred from associating with a FINRA member in any capacity.
Consult With a FINRA Arbitration Attorney in Florida
At Carlson & Associates, P.A., our Miami investment fraud lawyers have the skills and experience to represent you in all aspects of a FINRA arbitration proceeding. If you have any specific questions or concerns about the process, please do not hesitate to contact us for a fully confidential, no obligation case review. We fight for justice for investors throughout Florida.
Source:
brokercheck.finra.org/individual/summary/4579211
