Michael Leahy of Redbank, New Jersey submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) for allegedly failing to supervise one of the firm’s registered representatives. Leahy was a Compliance Officer for First Standard and was responsible for supervising representatives to ensure there were no FINRA Conduct Rule violations. However, FINRA found that while Leahy was an acting compliance officer, he failed to supervise a representative that had continuous red flags with unauthorized trades and excess commissions. FINRA found Leahy, as a Compliance Officer, did not conduct any investigations of these red flags in violation of FINRA Rules 3110 and 2010. Without admitting or denying the FINRA findings, Leahy agreed to the sanctions and was barred from association with any FINRA member and fined $5,000.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming failed supervision and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like First Standard, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your First Standard account due to failed supervision by your broker? Was Michael Leahy your broker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against First Standard stockbrokers who may have engaged in broker misconduct and caused investors’ losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.