There are options for clients of Laidlaw & Company broker Richard Michalski (CRD# 4588706) regarding stock and private placement losses. He has been registered with Laidlaw & Company in New York, New York, since 2010.
In November 2023, the United States Securities and Exchange Commission suspended him for six months and sanctioned him to pay $44,253 in civil and administrative penalties and fines, $88,506 in disgorgement, and a $4,260.55 monetary fine.
The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be, and hereby are, against Richard Michalski (“Michalski”) and Michael Murray (“Murray”) (together, “Respondents”). In anticipation of the institution of these proceedings, Respondents have submitted Offers of Settlement (the “Offers”) which the Commission has determined to accept. The commission finds that during the period of July 2020 through October 2021 (the “Reg. BI Period”), Respondents violated Exchange Act Rule 15l-1(a)(2)(ii), the Regulation Best Interest (“Reg. BI”) Care Obligation, when they made a series of recommendations to four retail customers without a reasonable basis to believe that the series of recommended transactions were not excessive when taken together in light of the retail customer’s investment profile, and because the series of recommended transactions placed the financial interest of the registered representatives ahead of the interest of the retail customer (the “quantitative prong” of the Care Obligation). As a result of the conduct described above, Respondents willfully violated Exchange Act Rules 15l-1(a)(2)(ii)(C) and 15l-1(a)(1).
In December 2023, the state of Maryland brought cease and desist proceedings with the SEC against the broker following allegations that between July 2020 and October 2021, he recommended investments to “four retail customers without a reasonable basis for believing the series of recommended transactions were not excessive in light of the retail customers’ investment profile and engaging in an investment strategy of frequent in-and-out trades that placed the broker’s interest in generating commissions and fees ahead of the customers’ interest in making a profit.” Additionally, it was found that, “The cost-to-equity ratios and annual turnover rates for the four customers’ exceeded thresholds indicative of excessive trading with cost-to-equity ratios ranging from 20.38% to 33.14% per account and annual turnover rates ranging from 7.9 to 16.5, generating approximately $260,916.73 in commissions and fees with approximately $88,506 paid to Michalski.”
Richard Michalski Customer Complaints
He has been the subject of two customer complaints between 2008 and 2024, according to his CRD report. The most recent complaint was regarding:
September 2024. “Client alleges breach of fiduciary duty from 2018 to 2023.” The customer is seeking $399,000 in damages, and the case is currently pending. The complaint was regarding equity OTC, common and preferred stocks, and private placements.
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, Laidlaw & Company may be liable for investment or other losses suffered by Richard Michalski’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.
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