As a financial analyst and legal expert with over a decade of experience, I’ve seen my fair share of misconduct allegations in the finance industry. The recent complaint filed by the Financial Industry Regulatory Authority (FINRA) against previously registered broker Michael Charles Grande (CRD#: 1219255) is a serious matter that warrants attention from investors and industry professionals alike.
According to the publicly available records released by FINRA, the complaint alleges that Grande failed to provide information requested by the regulatory body in connection with its investigation into the suitability of his recommendations to customers to engage in short-term trading of mutual funds. This type of trading strategy can be risky and may not always align with investors’ long-term financial goals.
The complaint further states that during a call with FINRA, Grande claimed he did not have access to the paperwork related to the customers identified in the information request and could not recall the specific strategies in place for those customers. Despite FINRA’s explanations and a second request for the same information, Grande failed to respond by the due dates without requesting extensions.
As an expert in the field, I cannot stress enough the importance of cooperation with regulatory investigations. Grande’s failure to provide the requested information significantly impeded FINRA’s ability to complete its investigation into his potential misconduct, which could have serious consequences for both the broker and his clients.
“The most valuable commodity I know of is information.” – Gordon Gekko, Wall Street (1987)
Throughout his career, Michael Grande worked with several firms, including:
- Richardson Greenshields Securities Inc
- H. Burckhardt & Company, Inc.
- Advest, Inc.
- Shochet Securities, Inc.
- Bluestone Capital Corp.
- Sands Brothers & Co., Ltd.
- Meyers Associates, L.P (expelled by FINRA in 2018)
- Newbridge Securities Corporation
It’s worth noting that one of Grande’s former employers, Meyers Associates, L.P, was expelled by FINRA in 2018, highlighting the need for thorough due diligence when selecting a financial advisor or brokerage firm.
The FINRA complaint against Grande is a reminder of the importance of FINRA Rule 8210, which requires registered individuals to provide information and cooperate with FINRA investigations. Failure to comply with this rule can result in serious consequences, including fines, suspensions, or even a permanent bar from the securities industry.
As an investor, it’s crucial to work with financial advisors who prioritize your best interests and operate with transparency and integrity. Before engaging with a broker, be sure to research their background using resources like FINRA’s BrokerCheck and the SEC’s Investment Adviser Public Disclosure database.
Fact: According to a 2019 study by the University of Chicago, approximately 7% of financial advisors have a history of misconduct, and those with past offenses are five times more likely to engage in future misconduct compared to their peers without a history of wrongdoing.
The pending FINRA complaint against Michael Grande serves as a cautionary tale for both investors and financial professionals. As the case unfolds, it will be important to monitor the outcome and any potential consequences for Grande and his clients. By staying informed and diligent, we can work together to promote a fair, transparent, and trustworthy financial industry.
