Former LPL Financial Broker Michael Babyak Jr Under Investigation After FINRA Permanent Bar

Silver Law Group is investigating former LPL Financial LLC (CRD# 6413) broker Michael Babyak Jr, II after FINRA permanently barred him.

According to Babyak’s FINRA BrokerCheck report, FINRA permanently barred Babyak from acting as a broker or otherwise associating with firms that sell securities to the public in October 2016.

Without admitting or denying the findings, FINRA found that Babyak had customers invest a total of $4.25 million into a limited liability company that he set up.  Babyak, who had complete control over the LLC, then loaned the $4.25 million to a third party for the benefit of his customers.  Further, Babyak arranged for the repaid funds to be loaned to two additional borrowers.  Babyak failed to notify his employing firm he was participating in these additional transactions.

The bar presumably stems from another disclosure on his BrokerCheck report.  In November 2015, LPL Financial discharged Babyak after he allegedly solicited clients regarding unapproved investments and loaned money to clients without approval in violation of LPL Financial’s policy.

Prior to the discharge and bar, a FINRA arbitration filed in April 2009 against Babyak was settled for $160,000.  The customer in the dispute alleged that Babyak failed to follow investment instructions, resulting in losses.

LPL Financial employed Babyak from 1994 to his discharge in 2015.  Babyak was briefly employed afterwards by Leigh Baldwin & Co., LLC (CRD# 38751) from December 2015 to September 2016.

According to his detailed CRD report, Babyak still works in an investment advisory capacity with PFS Partners, LLC, also knowns as Precision Financial Services, Inc., which is located in Mine Hill, New Jersey.  Babyak is the president of Precision Financial Services.

FINRA arbitration is a fast, efficient way to recover your lost investment funds due to unauthorized trading.  We work on a contingency fee basis, meaning you pay us nothing unless we win and recover money for you.

If you have invested with Michael Babyak Jr and LPL Financial or Leigh Baldwin & Co. and have lost money doing so, you may be able to recover some or all of your losses.  Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct through FINRA arbitration.

Silver Law Group represents the interests of investors who have been the victims of investment fraud.  If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.