NVESTOR ALERT: FINRA Files Complaint Against Columbus Advisory Group’s MICHAEL MURPHY
The Financial Industry Regulatory Authority (“FINRA”) announced that it filed a Complaint against Columbus Advisory Group, LTD securities representative Michael Patrick Murphy (CRD#: 2596905, New York, New York). Specifically, FINRA Department of Enforcement claims Murphy did not report a total of $6,000,000 in NY State Tax Warrants and IRS Tax Liens. Allegedly, FINRA found out about the Warrants and Liens and urged Murphy to report them. However, Murphy failed to take action in a timely manner. Because of this, FINRA says that Murphy violated Article V, Section 2(c) of FINRA By-Laws, and FINRA Rules 1122 and 2010.
NASD Fines Michael Murphy For Failing To Supervise Broker Who Made Unsuitable, Excessive Trades
Previously, Murphy was named in a regulatory action concerning his violation of industry rules while working at Murjen Financial, Inc. Specifically, National Association of Securities Dealers (“NASD”) sanctioned Murphy by issuing him a $9,000 fine and two-month suspension. Notably, NASD stated that Murphy failed to supervise a stockbroker who gave investors bad advice and who made excessive trades. Evidently, Murphy submitted a Letter of Acceptance, Waiver and Consent #CLI030028, which became effective December 8, 2003. Essentially, Murphy agreed to be bound by NASD sanctions and findings even though he did not admit fault. NASD stated that Murphy violated Rules 2110, 2860(B)(2), 2010(A) and 2010(B).
Furthermore, at least seven clients filed disputes concerning Murphy’s sales practices. For example, here is a summary of some of the claims involving Murphy as identified on FINRA BrokerCheck:
Columbus Advisory Group Client Files Arbitration Alleging Michael Murphy’s Unsuitable Direct Investments
Apparently, a client of Columbus Advisory Group filed FINRA Arbitration #18-04186 on December 31, 2018. Allegedly, Murphy put the client’s funds in direct investment products such as Direct Participation Program (DPP) or Limited Partnership (LP) products. These investments, according to the client, were not suitable. Supposedly, Murphy put the client in investments which conflicted with the client’s objectives. As a result, the client demanded $22,500,000 in damages. However, Murphy denies the client’s allegations in this ongoing matter.
Client Of Olympia Assets Management Files Dispute Alleging Michael Murphy Excessively Traded
Evidently, an Olympia Assets Management client contested Murphy’s sales practices. Particularly, the client brought FINRA Arbitration #09-06448, alleging excessive trading. Supposedly, Murphy made unreasonably frequent OTC equity or stock transactions in the client’s account. Because of this, the client experienced unreasonable investment losses. As a result, Olympia Asset Management Ltd. settled the matter paying the customer $900,000.
Have you experienced losses by investing with Michael Murphy, who has been an advisor of Columbus Advisory Group since December 12, 2002? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.