Miami Florida Broker Fined and Suspended by FINRA for Allegedly Borrowing Funds from Client

According to FINRA’s Disciplinary and Other FINRA Actions Publications, Miami broker Patrick McGrath III (CRD #1251254), also known as Pat McGrath, was fined $10,000 and suspended for four (4) months for allegedly borrowing $210,000 from a customer. Allegedly McGrath defaulted on the loan and his client filed a lawsuit to recover the funds owed.

FINRA alleged that McGrath was prohibited from borrowing funds from clients, other than family members, by his firm’s written supervisory procedures. FINRA also alleged that McGrath submitted three (3) compliance questionnaires to his brokerage firm which falsely stated he had not borrowed funds from a Firm customer, when he in fact had. (See FINRA AWC No. 2013037238901)

According to FINRA’s Broker Check, Patrick McGrath III has been registered in the securities industry for thirty one (31) years. McGrath is currently registered with the following firm:

NORTHEAST SECURITIES, INC.
CRD #25996
MIAMI, FL
02/2014 – PRESENT

McGrath has previously been registered with the following firm(s):

OPPENHEIMER & CO., INC.
CRD #249
MIAMI, FL
04/2009 – 01/2014

WACHOVIA SECURITIES, LLC
CRD #19616
CORAL GABLES, FL
07/2003 – 04/2009

PRUDENTIAL SECURITIES INCORPORATED
CRD #7471
NEW YORK, NY
05/2001 – 07/2003

UBS PAINEWEBBER INC.
CRD #8174
WEEHAWKEN, NJ
07/1990 – 05/2001

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
CRD #7691
NEW YORK, NY
05/1984 – 08/1990

If you have suffered investment losses as a result of your broker’s or brokerage firm’s misconduct, contact the Hanley Law to discuss your legal options. The Hanley Law is dedicated to helping investors nationwide. If you have lost money as a result of your broker’s recommendations, you may be entitled to recover your investment losses. Contact our office toll free at (239) 649-0050 for a complimentary initial consultation.

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