Michael B. Inderlied, of New Woodstock, New York, a stockbroker with Adirondack Trading Group LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he obstructed an investigation into allegations of his unsuitable investment recommendations to customers. Letter of Acceptance, Waiver and Consent, No. 2015046056403. (Sept. 1, 2016).
According to the AWC, on June 1, 2016, Inderlied was sent a request by FINRA, per Rule 8210, for him to provide recorded testimony in connection with allegations that he engaged in unsuitable investment recommendations. Apparently, Inderlied’s counsel contacted FINRA personnel in June and July of 2016, in which FINRA’s request was acknowledged by Inderlied.
Inderlied’s counsel ultimately indicated that Inderlied would not be cooperating with FINRA by providing the recorded testimony at any point. As such, FINRA found that Inderlied’s conduct was violative of FINRA Rule 2010 and 8210, resulting in his permanent bar.
Public disclosure records reveal that Inderlied has been subject to five disclosure incidents. On January 30, 1999, Inderlied settled a customer dispute for $18,686.79 after a customer alleged that Inderlied failed to disclose surrender penalties associated with a variable annuity. On October 24, 2012, Inderlied settled a customer dispute for $35,000.00 after the customer alleged breach of fiduciary duty, breach of contract, fraud, and misrepresentation.
On January 24, 2014, Inderlied was terminated from Wilbanks Securities, Inc., amid allegations of making improper recommendations to clients regarding variable annuities at a time when he was under heightened supervision by his firm. Apparently, Inderlied made recommendations to customers that they surrender annuities in order to purchase mutual fund shares, where customers incurred hefty surrender fees as a result.
On November 2, 2015, Missouri’s Securities Commissioner Consent Order and fined Inderlied $20,000.00 and required him to pay a customer $17,750.00 in restitution, in connection with a Consent Order containing findings that Inderlied engaged in unethical and dishonest investment business. Subsequently, Inderlied was terminated from Adirondack Trading Group on December 10, 2015.
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