Ryan Michael Murnane of Staten Island New York is a stockbroker formerly registered with Woodstock Financial Group who is subject of a Notice of Proposed Agency Action and Opportunity for Hearing brought by the Office of the Commissioner of Securities and Insurance Montana State Auditor which alleged that Murnane committed securities fraud. In the Matter of Woodstock Financial Group, Inc. et al. No. SEC-2017-80 (Dec. 19 2017).
According to the Notice, on January 11, 2017, a Montana resident, AS, filed a complaint with the Commissioner of Securities and Insurance, alleging that the customer’s account had dwindled from $70,000.00 to $7,000.00 during the time that Murnane was the sales person associated with the customer’s account. Apparently, the Commissioner of Securities and Insurance launched an investigation, discovering that Murnane’s activities in the customer’s account took place while he was not registered in the state. Murnane reportedly utilized the credentials of a Woodstock representative, Joseph L. Derrico, to effect the transactions, or otherwise instructed Derrico to place trades in AS’ account.
The Notice stated that over an eighteen month period, AS contributed $124,197.00 to invest at Woodstock, where forty-four transactions relating to ten securities had been initiated by Murnane in the AS’ accounts despite AS never having been notified about the trades. Those trades reportedly consisted of securities purchases totaling $2,397,257.46 with a 22.29 Looper turnover rate and sales totaling $2,668,059.93 with a 16.74 Looper turnover rate. Securities held in AS’ account had reportedly been held for only thirty-three days on average. The Notice further stated that $86,856.12 in commissions had been assessed, with AS having to pay a $1,974.00 commission on average for each trade. AS’ account apparently suffered $99,475.27 in losses, which equated to a $2,260.80 loss on average for each trade.
The Notice stated that Murnane effected trades in the customer’s account on an excessive basis; engaged in margin trading without authorization; executed trades in the customer’s account without conferring with the customer; neglected to document trades executed in the customer’s account; effected trades on a discretionary basis even though there was no authorization that enabled those transactions to be executed; charged inequitable and unreasonable fees by assessing commissions that totaled seventy-nine percent of AS’ investment; unlawfully solicited a resident of Montana; and engaged in business utilizing another representative’s credentials; and committed securities fraud.
The Commissioner of Securities and Insurance alleged that Murnane’s conduct was violative of Admin. R. Mont. 6.10.401(1)(b); Admin. R. Mont. 6.10.401(1)(e); Admin R. Mont. 6.10.401(1)(k); and § 30-10-201(1). Consequently, the Commissioner of Securities and Insurance requested that Murnane be fined and barred from engaging in securities related business in the State of Montana.
Financial Industry Regulatory Authority (FINRA) Public Disclosure confirms that Murnane has been referenced in six customer initiated investment related disputes containing accusations of Murnane’s misconduct while employed with Rockwell Securities LLC, J.P. Turner & Company LLC and Woodstock Financial Group. Specifically, on August 14, 2012, a customer filed an investment related written complaint involving Murnane’s conduct, where the customer requested $17,739.00 in damages based upon allegations of unauthorized and excessive equity trading.
Subsequently, a customer initiated investment related arbitration claim regarding Murnane’s activities was resolved for $71,116.00 in damages supported by accusations of securities fraud, negligence, and breach of contractual and fiduciary duties relating to stock trades placed in the customer’s investment portfolio. FINRA Arbitration No. 12-02958 (Aug. 8, 2013). Thereafter, a customer initiated investment related arbitration claim involving Murnane’s conduct was settled for $50,000.00 in damages founded on allegations of breach of fiduciary duty, suitability, breach of contract, fraud, churning and unauthorized trading in the customer’s account. FINRA Arbitration No. 12-02411 (Aug. 14, 2013).
Moreover, on October 16, 2013, a customer initiated investment related written complaint regarding Murnane’s activities was resolved for $30,000.00 in damages based upon accusations that Murnane breached his contractual duties, effected unsuitable stock and over-the-counter equities transactions in the customer’s account, and defrauded the customer. On January 12, 2017, another customer filed an investment related written complaint involving Murnane’s conduct, in which the customer sought $63,000.00 in damages supported by allegations that Murnane failed to abide by the customer’s instructions and contributed to the customer’s over-the-counter equities loses.
On January 10, 2017, Murnane was fired by Woodstock Financial Group based upon accusations that he failed to make required regulatory disclosures and had destroyed one of the firm’s registered representative’s personal computer. He was later employed with Alexander Capital, L.P. between January 12, 2017 to April 3, 2017.
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