Abraham Biderman of New York New York a stockbroker formerly registered with Palladium Capital Advisors LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Biderman failed to provide FINRA with information in FINRA’s investigation into accusations of Biderman selling away from the firm. Letter of Acceptance Waiver and Consent No. 2018058695501 (July 2, 2018).
According to the AWC, FINRA was notified in February 2018 that Biderman’s registration with Palladium Capital Advisors LLC was terminated during a period that Biderman had been internally investigated for violating the procedures of the firm. The AWC stated that an investigation was launched by FINRA relating to Biderman’s possible engagement in a securities transaction outside the firm’s auspices.
The AWC stated that on April 30, 2018, Biderman was sent a request from FINRA for information to be provided by Biderman in reference to the allegations of his misconduct, according to Rule 8210. FINRA’s request went unanswered by Biderman. On May 16, 2018, FINRA requested that Biderman provide information to FINRA by a May 31, 2018 deadline. Biderman reportedly failed to provide information or documentation to FINRA by the deadlines imposed.
The AWC stated that Biderman’s counsel communicated with FINRA on May 30, 2018, where FINRA was notified that Biderman understood FINRA’s request but would not be furnishing any information requested from the regulator at any point. FINRA found Biderman’s failure to cooperate to be violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure reveals that Biderman has been identified in two customer initiated investment related disputes containing allegations of Biderman’s violative conduct during the period that he was employed by Lipper Convertibles, L.P. Particularly, a customer initiated investment related arbitration claim concerning Biderman’s conduct was settled for $68,000.00 in damages supported by accusations including: conversion; breach of contract; violation of California Business and Professions Code; violation of California Corporate Securities Law; violation of Securities Exchange Act of 1934 Sections 10(b), 9(A)(2) and 20(A); violation of SEC Rule 10b-5; negligence; constructive fraud; gross negligence; misrepresentation; suitability; and breach of fiduciary duty concerning the customer’s investment in a hedge fund. NASD Arbitration No. 02-07206 (June 14, 2004).
Thereafter, a customer filed an investment related arbitration claim involving Biderman’s conduct where the customer requested $10,000,000.00 in damages founded on allegations that contractual and fiduciary obligations had been breached; misrepresentations had been made to the customer; and the customer had been defrauded. Arbitration No. 04-01135 (Aug. 15, 2016).
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