Michael Magruder Barred By FINRA And Linked To Raymond James Client Disputes Over Loans

FINRA barred securities broker Michael Edwin Magruder [CRD: 4579211, Orlando, Florida] and investors complained about him, based on public information reported on FINRA BrokerCheck. Magruder worked for Raymond James Associates Inc. from July 1, 2021 to August 2, 2024, and previously for Merrill Lynch from August 21, 2015 to July 2, 2021. See the following information to find out more about the disclosures related to Magruder’s conduct and regulatory infractions.

FINRA Sanctioned Magruder For Withholding Information

Specifically, on June 27, 2025, Financial Industry Regulatory Authority (FINRA) issued Case: 2022075862201 sanctioning Michael Magruder. Notably, FINRA alleged that Magruder failed to provide documents and information requested during a regulatory investigation.

This issue originated from an amended Form U5 submitted by Merrill Lynch on August 5, 2022, which disclosed an internal review regarding Magruder’s acceptance of a loan from a client. Supposedly, the loan occurred without the firm’s knowledge or approval. Subsequently, Raymond James Associates Inc. filed a Form U5 on August 2, 2024, stating that Magruder was discharged for violating firm policy because of the loan and for failing to update regulatory forms.

Supposedly, FINRA sent Magruder a Rule 8210 request on February 28, 2025. The request sought information and documents concerning whether Magruder obtained loans from investors without notifying or receiving approval from his firms. On May 13, 2025, Magruder submitted a response that was deemed incomplete and noncompliant. He acknowledged receipt of the request but confirmed he would not be submitting the required materials.

By failing to cooperate with the investigation and refusing to provide the requested documents, Magruder violated FINRA Rules 8210 and 2010. As a result, FINRA imposed a bar, which prevents him from associating with any FINRA member firm in any capacity.

Raymond James Associates Inc. Investor Accused Michael Magruder Of Discretionary Trading

Particularly, on June 12, 2025, a Raymond James Associates Inc. client filed a complaint about Michael Magruder. Allegedly, Magruder borrowed client funds and engaged in discretionary trading. As a result, the client allegedly sustained damages. Therefore, the client requested $686,552.00 in compensation from Raymond James Associates Inc. or Magruder.

Magruder Disclosed Client Loan Allegations By Raymond James Associates Inc. Client

Additionally, a client of Raymond James Associates Inc. contested Michael Magruder’s sales practices in FINRA Arbitration No. 25-01084 on May 29, 2025. Supposedly, Magruder borrowed client funds and failed to repay them. So, the client seeks compensation from Raymond James Associates Inc. or Magruder in this ongoing matter.

Did You Sustain Losses Because Of Financial Advisor / Securities Broker Michael Magruder?

Are you concerned regarding investments you made with Michael Magruder? You should reach out to Soreide Law Group online or at (888) 760-6552 and consult with a securities attorney concerning a potential recovery. Soreide Law Group is experienced at recovering losses for investors located within the US. Also, the firm handles cases on a contingency fee arrangement and advances all costs. Magruder and brokerage firms Magruder worked for deny allegations of sales practice violations.