Larry Michael Crabtree (also known as Mike Crabtree) of Edmond Oklahoma a stockbroker formerly registered with Wilbanks Securities Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Crabtree neglected to comply with FINRA through its investigation into allegations of Crabtree’s possible violations of FINRA rules or federal securities laws. Letter of Acceptance Waiver and Consent No. 2017055858301 (June. 25, 2019).
According to the AWC, Crabtree was subject of a FINRA investigation in 2019 in regard to his activities. Evidently, Crabtree was contacted by FINRA on April 22, 2019 with instructions to provide testimony before FINRA personnel on May 6, 2019. At that time he was issued this notice, Crabtree was warned by FINRA that under Rule 8210, Crabtree’s failure to cooperate could result in him being sanctioned by FINRA; and one of those sanctions could be a bar from associating with any FINRA member in any capacity.
The AWC indicated that FINRA was contacted by Crabtree on April 24, 2019, wherein Crabtree acknowledged that there would be no testimony provided by him on the scheduled occasion, nor would Crabtree provide FINRA with any cooperation through the regulator’s investigation into Crabtree’s activities. Ultimately, Crabtree failed to provide the testimony. Consequently, FINRA determined that Crabtree’s lack of cooperation in this regard was violative of FINRA Rules 2010 and 8210, resulting in Crabtree being barred from the securities industry.
This marks the third occasion in which Crabtree has been sanctioned by a securities regulator for misconduct. Specifically, Crabtree was censured and fined $6,500.00 by National Association of Securities Dealers (NASD) founded on accusations that during the time that he was associated with Merrill Lynch Pierce Fenner Smith, misleading and unauthorized correspondence had been provided to customers; and Crabtree held himself out as having been employed by a company affiliated with the securities broker dealer who had terminated his registration. Letter of Acceptance Waiver and Consent No. C95960059.
Subsequently, Crabtree was suspended for six months by FINRA based upon allegations that unsuitable trades, including stock issued by a highly-leveraged energy company, GMX Resources, and other closed-end funds, had been executed by Crabtree in a customer’s individual retirement account; more than one thousand trades were placed by Crabtree in customers’ accounts without him procuring written authorization to exercise discretion in the customers’ brokerage accounts; and unwarranted, misleading and unauthorized communications and consolidated reports had been disseminated by Crabtree as part of his securities business. Letter of Acceptance Waiver and Consent No. 2013038710501 (Dec. 30, 2015). FINRA found Crabtree’s conduct violative of FINRA Rules 2111, 2010, 2210 and NASD Rules 2510(b).
FINRA Public Disclosure also reveals that Crabtree is referenced in two customer initiated investment related disputes containing accusations of his violative conduct during the time that he was associated with WFG Investments Inc. Specifically, a customer initiated investment related complaint concerning Crabtree’s activities was resolved for $16,000.00 in damages supported by allegations that the customer was charged excessive commissions or management fees on investments. Another customer initiated investment related complaint involving Crabtree’s conduct was settled for $70,000.00 in damages based upon accusations that bad advice was provided to customers by Crabtree in regard to investments in mutual fund, stock and corporate debt products.
Crabtree’s registration with Wilbanks Securities Inc. has been terminated as of October 5, 2017.
