Michael Barranco Faces Allegations, Investor Seeks to Recover Over $3 Million
Michael Barranco (CRD #:4825738), a broker formerly registered with LPL Financial, is involved in an investor dispute according to his BrokerCheck record, accessed on February 2, 2022.
On October 6, 2021, a dispute was filed against Michael Barranco, alleging selling away in connection with their investment in real estate. The investors are seeking $3,215,649.78一the dispute is still pending.
Undisclosed Private Securities Transactions
There is another disclosure involving selling away—a.k.a. unapproved private securities transactions—on Michael Barranco’s record. According to an Acceptance, Waiver, and Consent agreement dated August 1, 2016, Michael Barranco consented to the findings that he allegedly participated in almost 40 private securities transactions with three different issuers without providing proper notice to his firm. In total, 27 people, most of whom were firm customers, invested over $3.5 million through Michael Barranco一 violating FINRA Rules 3280 and 2010.
Undisclosing Private Securities Transactions is a Violation of FINRA Rule 3280
FINRA Rule 3280 states that before participating in any private securities transaction, a registered broker should provide written notice to his/her member firm describing in detail the proposed transaction and proposed role. Brokerage firms maintain a list of approved securities their brokers are allowed to offer. By approving products ahead of time, brokerage firms ensure that their brokers sell only approved securities.
The broker should also state whether he/she has received or may receive selling compensation in connection with the transaction.
A violation of FINRA Rule 3280 is also a violation of FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.
FINRA Suspension and Fine
As part of the AWC, Michael Barranco consented to the following FINRA sanctions:
- A two-year suspension
- A $20,000 fine
You can read the whole AWC here.
On November 17, 2015, LPL Financial fired Michael Barranco after he allegedly solicited clients to invest in private securities transactions.
Michael Barranco Background Information
Michael Barranco has passed the following exams:
- Series 65 – Uniform Investment Adviser Law Examination
- Series 66 – Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
Besides LPL Financial, Michael Barranco has also worked with Raymond James Financial Services (CRD#:6694).
Kurta Law Can Help
If you have worked with Michael Barranco and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or firstname.lastname@example.org for a free consultation.
For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.