• May 16, 2024
• Newbridge Securities

Michael Charles Grande (CRD#: 1219255) is a previously registered broker.

Broker’s Background

He entered the securities industry in 1984 and previously worked with Richardson Greenshields Securities Inc; H. Burckhardt & Company, Inc.; Advest, Inc.; Shochet Securities, Inc.; Bluestone Capital Corp.; Sands Brothers & Co., Ltd.; Meyers Associates, L.P (FINRA expelled the firm in 2018); and Newbridge Securities Corporation.

Allegations of Misconduct

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in April 2024, Michael Grande was named a respondent in a FINRA complaint alleging that he failed to provide information requested by FINRA in connection with its investigation into the suitability of his recommendations to his customers to engage in short-term trading of mutual funds.

The complaint alleges that during a call with FINRA, Grande stated that he did not have access to the paperwork related to the customers identified in an information request and that he could not recall the specific strategies that were in place for the identified customers. FINRA explained to Grande that he was required to submit a written response to the information request and Grande stated that he needed time to think about how he was going to respond. Subsequently, FINRA sent Grande a second request for the same information.

Grande failed to respond to both requests by their due dates, and he did not request extensions of time to respond. The information requests sought material information about the suitability of Grande’s mutual fund transactions and his failure to provide the requested information significantly impeded the completion of FINRA’s investigation into his potential misconduct.

The FINRA complaint is still pending.

For a copy of the complaint, click here.

For a copy of Michael Grande’s FINRA BrokerCheck, click here.

 

We Help Investors Recover Investment Losses

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

 

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

 

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.

 

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

 

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.