Securities Arbitration Lawyers BlogFINRA Bars Broker Michael Archimede After Customer Loan
Michael Archimede (CRD# 5701306) is a former registered broker and investment advisor previously employed with PFS Investments Inc. (CRD# 10111) of Waukesha, WI He has been in the industry since 2010.
On 11/9/2023, a customer filed a dispute alleging that Archimede borrowed money and failed to repay the loan, requesting damages of $52,482.12. This claim is currently listed as “pending.”
On 12/31/2023, PFS Investments terminated Archimede’s employment for failing to renew his securities licenses. However, during an internal review, Archimede admitted that he had borrowed money from a customer. On January 10, 2024, PFS updated the Form U5 filing to show that he was permitted to resign while under review for allegedly initiating a customer loan.
FINRA initiated a review based on the Form U5 issued by PFS Investments following his separation from their employment.
Archimede failed to respond to requests for information and documentation and appear for on-the-record testimony related to the customer loan. The loan was purportedly related to a possible crypto investment into an offering that Archimede was considering away from PFS Investments.
When he failed to comply with the requests, FINRA issued a Letter of Acceptance, Waiver & Consent (AWC.) Archimede signed the letter on 1/17/2024, which was then accepted and signed by FINRA on 1/22/2024. In it, Archimede neither admitted or denied any findings, and accepted the sanction of being permanently barred from any further affiliation with any FINRA member.
Archimede had no prior disciplinary actions on his record.
Should You Loan Your Broker Money?
Unless your broker is also your parent, child, or other close relative, loaning money to your broker or other financial professional can be fraught with problems. It’s also mostly barred by FINRA.
FINRA Rule 3240 details the prohibitions that brokers face for borrowing money, and the strict conditions under which they can. Most firms have written policies detailing those conditions, and must be met to borrow, such as the nature of the broker’s relationship to the lender.
While many brokers successfully repay the money they borrow, there is also the risk that they will not. It’s possible that you will not only lose that money but have little or no recourse for getting it back. Many brokers declare bankruptcy or have tax liens in their record. In one case, a broker took out multiple loans with several different clients and passed away shortly after his company terminated him for doing so.
Did You Invest With Michael Archimede?
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.