Allegation’s Seriousness, Case Information, and How it Affects Investors
Michael Craig Brickman, a former registered broker, found himself the subject of FINRA’s scrutiny- a situation no investor would wish to find themselves involved with. The seriousness of the allegations lies in the refusal of Brickman to provide crucial information and documents in relation to an ongoing investigation concerning his acceptance of personal checks from a client. For investors, this situation raises a red flag as it goes against the principles of transparency and trust instilled in the financial industry.
Brickman, having worked with reputable firms like Pruco Securities, LLC and Lincoln Investment Planning, Inc., has a comprehensive career profile. However, his actions might affect investor trust, not only in his advice but also in his affiliated firms. This is of utmost importance as Benjamin Franklin once said, “It takes many good deeds to build a good reputation, and only one bad one to lose it.”
The Financial Advisor’s Background, Broker Dealer, and Past Complaints
Brickman commenced his tenure in the securities industry in 2000 and has contributed his expertise to numerous financial securities firms. His most recent association with Pruco Securities, LLC ended in August 2023 when he decided to voluntarily terminate his registration.
What’s more concerning is that this isn’t the initially reported misconduct in Brickman’s career. He also faced previous FINRA disclosures in July 2023 and June 2023, pertaining to the acceptance of personal checks from a client and misrepresentation on annuity applications. These complaints could indicate a possible pattern of violations and raises alarm about any advice or services patronized from him.
Explanation in Simple Terms and the FINRA Rule
The FINRA Rule 8210 requires all members to cooperate fully with investigations. Refusing to submit crucial information or documents is a violation of this rule, as in Brickman’s case. Understandably, this might seem like a complex scenario to digest. However, imagine if one of your employees isn’t cooperating with your company’s investigation and withholding crucial information- this is what happened in Brickman’s case- plain and simple.
Furthermore, FINRA Rule 2150 and 3240 are also important as they prevent misuse of customer’s funds and prohibit loans from customers to financial advisors. Essentially, these measures are implemented to protect you, the investor, from getting caught in a tricky financial web.
Consequences and Lessons Learned
The case concluded with the serious sanction of barring Brickman from associating with any FINRA member in all capacities. This demonstrates the gravity of overlooking rules and regulations set by FINRA. As an investor, it’s crucial to select your financial advisors carefully.
Why is this important? According to a survey by the Certified Financial Planner Board of Standards, approximately 7.3% of financial advisors have at least one customer complaint, regulatory action, or criminal conviction against them. This calls for vigilant selection when it comes to financial advisors. Just like how every dollar counts, every advisor matters.
In closing, it’s worth noting that as an investor, your money is your responsibility. Instead of blindly trusting financial advisors, make informed decisions. Remember, the key is not only gaining financial wealth, but also the wealth of knowledge.
