Securities Broker Mike Leahy Sanctioned By FINRA, Ordered To Pay Client Compensation For Failure To Supervise

Soreide Law Group has come across the Financial Industry Regulatory Authority (“FINRA”) BrokerCheck profile of securities broker Michael Leahy “Mike Leahy” (CRD#: 1899498, Red Bank, New Jersey). It seems that the regulator suspended Leahy as a securities broker in August 2021 for noncompliance. The regulator has since lifted that suspension. Another FINRA sanction on Leahy’s record comes after he allegedly failed to supervise securities brokers. Supposedly, those unsupervised brokers made unsuitable and excessive transactions. Moreover, two investors brought disputes about Leahy. Here’s more on these disclosures.

FINRA Sanctions Leahy For Noncompliance

Evidently, in August 2021, FINRA suspended Mike Leahy as a securities broker. The financial industry watchdog claims that Leahy did not pay an Arbitration Award or did not confirm with FINRA whether he paid it. Evidently, Leahy served the suspension from August 10, 2021, to September 7, 2021, at which point FINRA lifted it.

Notably, the FINRA Award – issued in June 2021 – comes in connection with Leahy being liable for sales practice violations. Specifically, that Arbitrator ordered him to pay $232,426.30 in damages to a client. That client’s Statement of Claim contained causes of action including breach of contract, violation of securities laws, and control person liability in connection with the alleged churning and unauthorized trading in the client’s account.

FINRA Sanctions Mike Leahy For Purportedly Failing To Supervise

Notably, in January 2020, FINRA barred Mike Leahy indefinitely as a supervisor of securities brokers. The regulator also imposed a $5,000 fine given allegations of the broker’s failure to supervise a securities broker at First Standard Financial Company in violation of FINRA rules. Leahy did not admit to the alleged misconduct. However, he consented to the sanctions to resolve the matter.

Namely, FINRA says that the First Standard securities broker made unauthorized trades, used margin without authorization, recommended unsuitable and excessive trades, and charged excessive commissions. This all happened from September 2019 to October 2019. FINRA says that Mike Leahy was the only principal of First Standard Financial Company. Because of this, he was supposed to monitor the broker’s activities, and he knew of red flags about the securities broker’s misbehavior.

Reportedly, information available to Mike Leahy showed that the securities broker made frequent trades, charged significant commissions, and caused client complaints. Notably, FINRA says that Leahy did not do enough to investigate the securities broker or stop his misconduct.

Client Of First Standard Financial Company Alleges Churning, Breach Of Fiduciary Duty

Notably, a client of First Standard Financial Company targeted Mike Leahy in a June 2021 complaint alleging sales practice violations. BrokerCheck shows that this client alleged unsuitable trading, churning, negligent supervision, breach of fiduciary duty, negligent misrepresentation, omissions, and failure to supervise. It seems that these allegations relate to annuities transactions. Because of this, the client demanded $196,836.18 in compensation. This matter awaits a resolution.

A prior dispute about Mike Leahy alleges unauthorized trading at LH Ross. However, it appears that this client discontinued their complaint.

Did You Sustain Damages Through Mike Leahy?

Did Mike Leahy cause you to experience losses? If so, call Soreide Law Group at (888) 760-6552 and speak with a securities lawyer about a potential recovery of your losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered compensation for many United States investors who incurred losses because of their financial advisors and securities brokers. Please note that Leahy denies all allegations of his sales practice violations.Lars Soreide AVVO 2020 Top Lawyer