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.
The foregoing information, which is all publicly available, is being provided by The White Law Group. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For a free consultation with a securities attorney, please call The White Law Group at 1-888-637-5510.
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