Michael Joseph Clarke of Jersey City New Jersey a stockbroker formerly registered with MARV Capital Inc. and Tradition Asiel Securities Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity according to a National Adjudicatory Council Decision containing findings of Clarke’s conversion of investor funds and of his misrepresentations relating to his conversion. In the Matter of Department of Enforcement v. Michael Joseph Clarke Decision No. 2016050938301 (Sept. 17, 2020).
According to the Decision, when Clarke was employed by Whitaker Securities, MARV Capital and Traditional Asiel Securities, he took part in an outside business activity involving a ticket business for sporting and musical events. To get individuals to invest in his business, Clarke represented that he knew many people who were ready to provide him with discounted tickets and that he could later sell those tickets at premium rates.
The Decision reported that individuals were induced by Clarke into buying tickets based on Clarke’s promise to repay them and to bring them in on a portion of the profits. Clarke failed to do what he promised. He instead pocketed the funds or used them to pay his expenses while lying to individuals who fronted him the money.
FINRA found that funds were converted by Clarke and that false statements were made by the stockbroker as it related to his conversion. By February of 2015, the stockbroker owed more than $300,000.00 to one individual. FINRA also revealed that $169,800.00 was owed to another individual later in 2015. Clarke obtained a total of $612,000.00 from customers through making false representations. His conduct was violative of FINRA Rule 2010.
FINRA Public Disclosure confirms that Clark is the subject of an investment related civil action where the investors sought $672,900.00 in damages supported by accusations of misappropriation and fraud by investing in Clarke’s scheme which involved the advancement of funds to Clarke for his ticketing business. Civil Action No. 654875-2016 (Sept. 22, 2016). According to the claim, investors were told that Clarke would buy and then resell box tickets for musical performances and sporting events. Those who complained were allegedly provided bogus checks from Clarke and told to cash those checks at specified times. Clarke allegedly avoided calls and demands from customers regarding the repayment of their funds.
Clarke was discharged by Whitaker Securities founded on allegations of him borrowing from customers and having issued bad checks. The stockbroker was also terminated from MARV Capital founded on accusations of misappropriation and affinity fraud. He was registered with Avatar Capital Group LLC until September 17, 2020.