Michael William Leahy of Red Bank, New Jersey, a stockbroker formerly registered with First Standard Financial Company LLC, is named in a customer initiated investment related FINRA securities arbitration claim in which the customer was awarded $2,842,976.79 in damages based on Leahy being found liable for sales practice violations. Financial Industry Regulatory Authority (FINRA) Arbitration No. 19-03839 (February 2, 2022). The Statement of Claim alleged misrepresentation, breach of contract, breach of fiduciary duty, failure to supervise, and quantitative and qualitative suitability. On April 12, 2022, Leahy was sanctioned by FINRA founded on accusations that he failed to comply with the arbitration award.
Leahy did not show up at the hearing. Leahy has been identified in two additional customer initiated investment related disputes concerning accusations of his activities while employed by First Standard Financial Company and LH Ross. FINRA Public Disclosure shows that a customer filed an investment related complaint concerning Leahy’s conduct in which the customer sought $15,561.00 in damages based upon allegations that an investment was sold from the customer’s account without authorization.
Another customer filed an investment related FINRA securities arbitration claim involving Leahy’s conduct where the customer requested $196,836.19 in damages based on allegations of omissions and misrepresentations, breach of contract, negligent supervision, failure to supervise, unsuitable transactions, and churning while he was employed by First Standard Financial Company. FINRA Arbitration No. 21-01559 (June 21, 2021). The claim also alleges a breach of fiduciary duty relating to annuities transactions.
Leahy has been fined $5,000.00 and barred from associating with any FINRA member in any principal capacity supported by findings that he failed to supervise a stockbroker who made unsuitable recommendations and unauthorized trades at First Standard Financial Company. Letter of Acceptance, Waiver, and Consent No. 2019063631802 (January 22, 2020).
According to the AWC, between September 18, 2019, and October 8, 2019, stockbroker PS made unauthorized trades, recommended unsuitable and excessive transactions, and overly charged customers. The stockbroker was supervised by Leahy.
FINRA states that Leahy was aware of the stockbroker’s conduct, as red flags showed that the stockbroker caused frequent trades and commissions which exceeded five percent. Leahy was aware that the stockbroker was accused of unauthorized margin use, unauthorized trading, and excessive commissions from customers who complained about the stockbroker. Leahy’s failure to investigate resulted in the stockbroker’s continued sales practice violations. The stockbroker’s registration has since been revoked by State of New Jersey. FINRA found that Leahy failed to supervise, violating Rules 2010 and 3110.
Leahy was associated with First Standard Financial Company between July 14, 2017, and December 31, 2019.
