Many investors are unaware of the legal recourse available to them after losing money due to securities broker negligence and/or fraud. The truth is that investors who have lost money in this fashion may be entitled to damages. The law firm of Oakes & Fosher is interested in hearing from investors who believe this may be them.
Oakes & Fosher is currently investigating the possible misconduct of former securities broker Michael Babyak. According to his publicly available FINRA BrokerCheck report, Michael Babyak has been the subject of a customer dispute and a FINRA sanction.
Michael Babyak was a New Jersey based securities broker. He worked in the securities industry for twenty-two years. During his career, he was registered with just two different securities firms.
The Registrations
- LPL Financial (1994-2015)
- Leigh Baldwin & Co. (2015-2016)
The Allegations
- In April 2009, a customer alleged that Babyak failed to follow investment instructions that resulted in losses. This case was settled for $160,000 in damages.
- Michael Babyak’s report also shows that in October 2016 he was officially sanctioned by FINRA. The findings in this matter shows that Babyak solicited investments from customers of his member firm for a private security that he set up. He allegedly solicited a total of $4,250,000 from these customers. Michael Babyak allegedly did all of this without providing notice to his member firm. Due to these alleged actions, he was barred by FINRA from acting as a securities broker in any fashion.
What Does This Mean?
It is required of registered securities brokers to disclose their involvement with outside securities to their member firm. They are also supposed to receive authorization from their member firm before they solicit investments from member firm customers. Securities brokers, like Michael Babyak, sometimes circumvent this procedure when they know that an outside investment will not be approved due to its unsuitability. Investors who believe that they have lost money due to their securities broker investing them in unapproved outside investments may be entitled to damages.
Oakes & Fosher Can Help
Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Michael Babyak, please contact Oakes & Fosher for a free and private consultation.
