FINRA Bars Ex-Broker Probed Over Mutual Fund Suggestions

Former broker Michael Charles Grande has been barred from working with registered investment and advisory firms after refusing to respond to a Financial Industry Regulatory Authority investigation into mutual fund recommendations he made to clients, the organization says.

Grande is barred from associating with any registered FINRA firm in any capacity, a hearing officer ruled last week. He passed his Series 7 exam in 1983 and went on to work with eight broker-dealers from 1984-2022.

The former advisor was with Newbridge Securities Corp., in Fort Lauderdale, Florida, from November 2005 until May 2022, according to his FINRA BrokerCheck record.

FINRA staff members first requested information late last year, the decision states. They were looking into whether certain mutual fund recommendations to clients were suitable — specifically Grande’s suggestions that customers engage in short-term mutual fund trading — it says.

In one phone call with the agency, Grande told FINRA that he didn’t have access to the paperwork related to customers identified in the request and that he could not recall specific strategies that were in place for the clients, the agency alleged.

He failed to respond to two requests for information and didn’t seek extra time to respond, FINRA says.

FINRA’s enforcement department filed a complaint against Grande alleging he failed to provide the requested information, violating agency rules. Last month, the department filed a motion seeking a default decision; the former broker failed to respond to that as well, the ruling states.

The hearing officer’s decision will become final Sept. 9 if no further action is taken.

Image: Shutterstock