Clifford Ronald Reid (CRD #1905920) Has Regulatory and Customer Dispute Disclosures on FINRA BrokerCheck

Clifford Ronald Reid (CRD #1905920) is a broker with regulatory and customer dispute disclosures on FINRA BrokerCheck. We reviewed his BrokerCheck report on April 28, 2026. It reflects one regulatory event and nine customer disputes. If you invested with Clifford Reid and have concerns, keep reading.

BrokerCheck link: BrokerCheck

BrokerCheck report: BrokerCheck Report (PDF)

Regulatory Action

Clifford Reid’s FINRA BrokerCheck Report reflects one pending regulatory disclosure. A summary of the disclosure is below:

On March 2, 2026, FINRA initiated a pending regulatory action. Clifford Reid FINRA BrokerCheck says FINRA filed a complaint involving Reid, Reid & Rudiger LLC, and others. The complaint says Reid and Edward Rudiger used a high-volume, high-cost market-timing strategy. It involved large stock positions, often on margin, followed by quick sales. FINRA says the accounts had $548,566.77 in costs and $1,104,850.61 in realized losses. The complaint also cites Reg BI, FINRA Rule 2111, FINRA Rule 2020, and FINRA Rule 2010. Reid denies the allegations and says he intends to contest the matter. FINRA Complaint.

Investor Disputes / Customer Complaints

Clifford Reid’s FINRA BrokerCheck Report reflects nine customer dispute disclosures. Two pending customer disputes are summarized below. Seven additional customer dispute disclosures remain in this category.

On October 2, 2025, a customer alleged breach of fiduciary duty, negligence, and excessive trading. Clifford Reid FINRA BrokerCheck lists the product as equity-OTC. The claim evolved into a FINRA arbitration, case number 25-02025. The arbitration remains pending. Reid’s statement says the allegations lack merit and that he denies wrongdoing.

On February 14, 2023, a customer alleged unsuitability, excessive trading and commissions, failure to supervise, and breach of fiduciary duty. Clifford Reid FINRA BrokerCheck lists the product as equity-OTC. The customer did not state a specific damage amount. The FINRA arbitration, case number 23-00295, remains pending. Reid’s statement says the recommendation was suitable and the trading and commissions were not excessive.

Rule Summary #1: FINRA Rule 2111 (Suitability)

FINRA Rule 2111 requires a reasonable basis for a recommendation. It also covers a series of trades when the activity may be excessive for the customer’s profile.

Rule Summary #2: FINRA Rule 2020 (Use of Manipulative, Deceptive or Other Fraudulent Devices)

FINRA Rule 2020 bars manipulative or deceptive devices in securities transactions. Churning claims often raise this rule when trading may serve the broker instead of the customer.

Why This Matters to Investors (Regulation Best Interest)

Regulation Best Interest (Reg BI) is a U.S. securities regulation. It strengthens the standard of conduct that broker-dealers owe to retail investors. It applies when they recommend securities transactions or investment strategies. The U.S. Securities and Exchange Commission adopted Reg BI. It became effective on June 30, 2020. Reg BI aims to protect investors while preserving access to brokerage products and services.

Reg BI requires broker-dealers and financial advisors to act in a retail customer’s best interest at the time of a recommendation. They must not place their own financial or other interests ahead of the customer’s. This standard is higher than the older “suitability” rule. Suitability meant a recommendation only had to be appropriate. It did not have to be the best option or free of conflicts.

Reg BI has four key obligations:

Disclosure Obligation – Broker-dealers must disclose material facts about the relationship and the recommendation. This includes fees, the scope of services, and conflicts of interest.

Care Obligation – Broker-dealers must use reasonable diligence, care, and skill. They must consider costs, risks, and alternatives when making a recommendation.

Conflict of Interest Obligation – Firms must identify conflicts of interest. They must disclose them and mitigate or eliminate them. This includes conflicts that create incentives to favor one product over another.

Compliance Obligation – Firms must maintain policies and procedures. Those policies should be designed to ensure compliance with Reg BI as a whole.

Reg BI applies to each recommendation. It is not a continuous duty like the fiduciary standard for registered investment advisers. Even so, it narrows the gap. It puts more focus on costs, conflicts, and investor-focused decision-making.

Overall, Regulation Best Interest promotes transparency. It also aims to improve the quality of investment recommendations. It is designed to reinforce trust between retail investors and broker-dealers in the U.S. securities markets.

Background Information (from BrokerCheck)

Based on his FINRA BrokerCheck report, Clifford Reid:

Is currently registered with Reid & Rudiger LLC.

Has passed the Securities Industry Essentials (SIE) exam. Clifford Reid has passed Series 24, Series 79TO, Series 7, Series 6, and Series 63.

Was previously registered with firms that include Nichols, Safina, Lerner & Co. Inc., Gruntal & Co. Incorporated, and First Investors Corporation.

Kurta Law Can Help

If you worked with Clifford Reid and have concerns, Kurta Law may be able to help. The firm can review your legal options. To speak with Kurta Law, call 877-600-0098 or email info@kurtalawfirm.com.

Helpful resources: Churning | Unsuitable Investments

For nearly 20 years, Kurta Law has advocated for investors. The firm helps hold financial professionals accountable. Our firm represents clients nationwide in securities arbitration and related disputes. If you believe a broker or firm mishandled your account, an attorney can review the facts. The attorney can also explain possible next steps.