Securities Arbitration Lawyers BlogFormer 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.