According to FINRA’s Disciplinary and Other FINRA Actions publication, Michael James Barranco (CRD #4825738) of Montgomery, Alabama consented to an Acceptance, Waiver and Consent (“AWC”) with FINRA in which he was assessed a fine of $20,000 and suspended from association with any FINRA member in any capacity for two years. As part of the FINRA AWC, Michael Barranco consented to the sanctions and to the entry of FINRA’s findings that he participated in private securities transactions with three different issuers outside of his member firm without providing proper notice to the firm. Barranco’s suspension is in effect from August 1, 2016, through July 31, 2018. (See FINRA Case # 2015048273301 ).
Michael James Barranco entered the securities industry in 2004 when he became registered as a General Securities Representative. He was registered with LPL Financial LLC (“LPL”) from April 2007 until December 17, 2015. FINRA alleged that between 2010 and 2015, while registered with LPL, Barranco participated in almost 40 private securities transactions with three different issuers without providing proper notice to his firm.
FINRA alleged that in total, 27 people, most of whom were firm customers, invested over $3.5 million through Barranco. FINRA alleged that Barranco participated in the solicitation of or otherwise facilitated investments by firm customers and others in 13% Senior Notes issued by TMG and that in total, between November 2010 and February 2011, Barranco participated in 35 transactions through which 27 individuals, most of whom were firm customers, invested at least $2,087,000 in the TMG notes. FINRA alleged that certain of the customers held their TMG notes in LPL accounts.
FINRA further alleged that in 2014, the founders of TMG purchased a distressed real estate development (“IBH”) and issued 12% Senior Notes (“IBH Notes”). FINRA alleged that Barranco recommended the IBH Notes to two of his customers and they invested a total of $750,000. FINRA also alleged that Barranco then participated in two additional transactions through which the customers converted their IBH Notes into notes in IBH’s parent company.
FINRA alleged that Barranco violated NASD Rule 3040 and FINRA Rule 2010. As a result, Barranco was suspended from association with any FINRA member in any capacity for a period of two years and fined $20,000. Also, according to FINRA’s Brokercheck LPL terminated Barranco for soliciting clients to invest in private securities transactions in violation of firm policy.
Furthermore, according to FINRA’s Broker Check, Michael James Barranco was registered with the securities industry for twelve (12) years, and was registered with the following firm(s):
LPL Financial LLC
CRD# 6413
Montgomery, AL
04/2007 – 12/2015
Raymond James Financial Services, Inc.
CRD# 6694
Montgomery, AL
11/2004 – 04/2007
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