FINRA Suspends Michael Ivcic for 15 Months

Michael Ivcic (CRD #: 6247801), a broker formerly registered with Bancroft Capital, has been suspended by FINRA, according to his BrokerCheck record, accessed on December 5, 2024. Read on to learn more about his alleged conduct as a broker.

FINRA Suspension

In a Letter of Acceptance, Waiver & Consent (AWC) filed on November 18, 2024, broker-dealer Drexel Hamilton consented to the entry of findings that it allegedly participated in primary offerings of municipal bonds from January 2016 through August 2018.

The AWC alleges that the firm submitted at least 572 orders on behalf of other brokerage firms during retail order periods with zip codes not associated with retail customers, which made it appear that the orders qualified for submission during these order periods. Further, the AWC alleges that the firm did not have a basis for designating these orders as retail.

From January 2016 to June 2018, Michael Ivcic allegedly served as Drexel Hamilton’s municipal securities syndicate representative and received and distributed information regarding the terms of the offerings, including the retail period eligibility criteria. He allegedly also submitted order tickets for new issue municipal bonds to syndicate managers on behalf of the firm.

During this time, he allegedly submitted 276 retail orders with zip codes not associated with a retail customer, and for some orders that did not contain zip codes provided by brokers, he included a zip code. He allegedly also split orders that exceeded the $1 million maximum into smaller orders on 29 occasions and included zip codes to create the appearance of orders by separate customers.

The AWC concluded that these allegations constituted violations of MSRB Rules G-11(k), G-17, and G-27 on the part of Drexel Hamilton. The AWC further alleged that Michael Ivcic violated MSRB Rules G-11(k) and G-17, both independently and by acting in contravention// of Section 17(a)(2) of the Securities Act of 1933.

MSRB Rules

MSRB Rules G-11(k) defines the required disclosures relating to retail order periods for dealers of primary offerings of municipal securities.

MSRB Rule G-17 requires brokers, dealers, and municipal securities dealers and advisors to engage in fair dealing and prohibits them from engaging in unfair and deceptive practices.

MSRB G-27 requires firms to establish supervisory systems to ensure their compliance with securities regulations.

Securities Act of 1933

Sections 17(a)(2) of the Securities Act of 1933 prohibits the use of untrue statements or omissions of fact to defraud or mislead customers participating in interstate securities transactions.

Sanctions

Drexel Hamilton consented to the following sanctions:

• Censure by FINRA
• $300,000 fine
• Disgorgement of $837,353

Michael Ivcic consented to the following sanctions:

• 15-month suspension from associating with FINRA members
• $30,000 fine

His suspension began on December 2, 2024, and will end on March 1, 2026.

You can access the full AWC here.

Background Information

Michael Ivcic has passed the following exams:

• Municipal Advisor Principal Qualification Examination – Series 54
• Municipal Securities Principal Examination – Series 53
• Municipal Advisor Representative Qualification Exam – Series 50
• Securities Industry Essentials Examination – SIE
• Municipal Securities Representative Examination – Series 52
• General Securities Representative Examination – Series 7
• Uniform Securities Agent State Law Examination – Series 63

He previously worked for Bancroft Capital (CRD#:290665) and Drexel Hamilton (CRD#:143570).

Kurta Law Can Help

If you worked with Michael Ivcic and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that 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.