The Financial Industry Regulatory Authority has barred a former broker who it says failed to provide information for one of its investigations, according to ThinkAdvisor.
FINRA took the action against Michael Charles Grande, who was with Newbridge Securities Corp. in Fort Lauderdale, Florida, from November 2005 until May 2022. The authority said Grande did not provide information that FINRA requested in connection with an investigation into whether certain mutual fund recommendations he made to customers were suitable. As a result, the complaint alleged, he violated FINRA Rules 8210 and 2010.
A hearing officer ruled that Grande is barred from associating with any registered FINRA firm in any capacity.
The matter involves FINRA’s investigation of Grande’s recommendations to customers to engage in short-term mutual fund trading.
In November 2023, FINRA staff sent Grande a letter pursuant to Rule 8210 requesting information related to various mutual fund transactions that he recommended to his customers, and also had a phone conversation in which he acknowledged receiving the request.
“During the call, Grande stated that he did not have access to the paperwork related to the customers identified in the staff’s First Request and that he could not recall certain information requested,” the complaint stated. “”FINRA staff explained that Grande was required to submit a written response to the 8210 request. Grande stated that he needed time to think about how he was going to respond. But Grande did not respond to the First Request and did not request an extension of time to respond.” Grande failed to respond to a second written request the following month and did not ask for an extension of time to respond.
FINRA’s enforcement department filed a complaint against Grande alleging he failed to provide the requested information. Last month, the department filed a motion seeking a default decision and the former broker failed to respond to that as well, according to the ruling.
The hearing officer’s decision will become final Sept. 9 if no further action is taken.
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