According to FINRA, Michael Babyak Jr. II (CRD #2376943, Randolph, New Jersey) has been permanently barred from the securities industry. Without admitting or denying the findings, Babyak consented to the sanction that he allegedly participated in private securities transactions involving his member firm’s customers without first providing the firm written or oral notice of his activities. The findings also stated that Babyak allegedly had the customers invest a total of $4,250,000 into a limited liability company that he set up.
Babyak also purportedly caused the company to loan the $4.25 million to a third party for the benefit of his customers. The findings also stated that Babyak allegedly arranged for the company to use funds repaid from the $4.25 million loan to extend loans on behalf of the customers to two additional borrowers, with one borrower receiving a total of $1,045,862.40, and another a total of $984,804.22.
For FINRA’s full findings see FINRA Case # 2015048141701.
According to his FINRA Broker Check Babyak was registered with Leigh Baldwin & Co. in Mine Hill, NJ from 12/02/2015 – 09/19/2016. Prior to that, he was registered with LPL Financial in Mine Hill, NJ from 01/19/1994 – 12/04/2015 until he was discharged for allegedly soliciting clients regarding unapproved investments and loaning money to clients without company approval. He has four disclosures listed on his Broker Report.
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