Erez Law is interested in speaking with investors who may have suffered losses due to investments with barred former First Standard Financial Company LLC broker Michael Leahy (CRD# 1899498). He has been registered with First Standard Financial Company LLC in Red Bank, New Jersey from 2017 to 2019 and with First Standard Financial Company LLC in Staten Island, New York from 2015 to 2016. Previously, he was registered with Alexander Capital, L.P. in Staten Island, New York from 2012 to 2014.
In January 2020, FINRA barred Michael Leahy and sanctioned him to pay a $5,000 civil and administrative penalty and fine. According to the Acceptance, Waiver & Consent (AWC), “Leahy consented to the sanctions and to the entry of findings that he failed to reasonably supervise a former registered representative who, while registered through a member firm, engaged in a pattern of unauthorized trading, using margin without authorization, recommending excessive and otherwise unsuitable transactions, and charging excessive commissions in dozens of customer accounts. The findings stated that Leahy, the sole principal at the firm and the only individual responsible for supervising the representative, was aware of multiple red flags of the representative’s misconduct. The red flags included daily trade blotters that showed frequent in-and-out trading and commissions often exceeding five percent, numerous customer complaints alleging unauthorized trading, unauthorized use of margin, and excessive commissions, and notification from the firm’s clearing firm of potential unauthorized trading by the representative. Leahy did not investigate those red flags or otherwise take reasonable action to curtail the representative’s pattern of misconduct. As a result of Leahy’s failure to reasonably respond to those red flags, the representative’s misconduct continued unabated until the New Jersey Bureau of Securities summarily revoked the representative’s registration in the State of New Jersey.”
FINRA suspended Michael Leahy from August 10 to September 7, 2021 regarding, “Respondent Leahy failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.”
In April 2022, FINRA indefinitely suspended him after he “failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.”
Michael Leahy Customer Complaints
He has been the subject of three customer complaints between 2005 and 2021, one of which was closed without action, according to his CRD report:
June 2021. “Michael Leahy was named in a customer complaint that asserted the following causes of action: churning; qualitative and quantitative unsuitability; failure to supervise; negligent supervision; breach of fiduciary contract and implied covenant of good faith and fair dealing; negligent misrepresentation and omissions; and violation of standards of commercial honor and principles of trade.” The customer is seeking $196,836.19 in damages and the case is currently pending. The complaint was regarding annuities losses.
March 2020. “Leahy was named in a customer complaint that asserted the following causes of action: negligence; qualitative and quantitative unsuitability; failure to supervise; breach of fiduciary duty; breach of contract; negligent misrepresentations; omissions; and lost opportunity damages.” The customers sought $1,363,023 in damages and were awarded $2,842,976.79 in compensatory damages, 1.5% interest per annum until paid in full, as well as $25,000 in costs and the $600 filing.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, First Standard Financial Company LLC may be liable for investment or other losses suffered by Michael Leahy’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.