Written by The White Law Group• January 24, 2024• 3:34 pm• Broker Investigations

Michael Archimede, PFS Securities, Barred by FINRA

FINRA Bars Michael Archimede after Allegations of Loan from Customer

The Financial Industry Regulatory Authority (FINRA) has reportedly barred financial advisor Michael Archimede (CRD # CRD#: 5701306) from the securities industry after allegedly failing to provide information in an investigation.

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According to a letter of acceptance, on December 21, 2023, PFS Investments filed a Uniform Termination Notice for Securities Industry Registration (Form U5) stating that it had terminated Archimede’s registrations through the firm. On January 10, 2024, PFS Investments filed an amended Form U5 disclosing that Archimede “was permitted to resign during an internal review after be admitted to borrowing money from a customer.”

Archimede reportedly refused to provide information and documents and to appear for on-the-record testimony requested by FINRA. FINRA was investigating whether Archimede borrowed customer funds in connection with Archimede’s potential investment in an offering involving crypto assets away from his member firm.

FINRA Rule 3240 – Borrowing from Customers

FINRA, the regulator who over sees brokers and brokerage firms, has rules in place to protect investors. FINRA Rule 3240 states that stockbrokers may only borrow from or lend to a customer if their firm has a policy in place allowing this type of financial arrangement.

However, most brokerage firms generally prohibit the practice. According to the Financial Regulatory Authority (FINRA) no person associated with a member in any registered capacity may borrow money from or lend money to any customer of such person unless:

The member has written procedures allowing the borrowing and lending of money between such registered persons and customers of the member
The borrowing or lending arrangement meets one of the following conditions:
The customer is a member of such person’s immediate family.
The customer is a financial institution regularly engaged in the business of providing credit, financing, or loans, or other entity or person that regularly arranges or extends credit in the ordinary course of business and is acting in the course of such business.
The customer and the registered person are both registered persons of the same member
The lending arrangement is based on a personal relationship with the customer, such that the loan would not have been solicited, offered, or given had the customer and the registered person not maintained a relationship outside of the broker-customer relationship; or
The lending arrangement is based on a business relationship outside of the broker-customer relationship.

Michael Archimede – FINRA BrokerCheck Profile

The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.

BrokerCheck provides investors with detailed information about the professional history, qualifications, and regulatory actions of brokers and brokerage firms. Investors can use the tool to verify if a broker or brokerage firm is registered with FINRA. They can also review their employment history, licensing status, and any regulatory actions or complaints filed against them.

According to his FINRA BrokerCheck profile, Archimede was affiliated with the following firm during his career:

01/01/2010 – 12/31/2023, PFS INVESTMENTS INC. (CRD#:10111), WAUKESHA, WI

If you have suffered losses investing with Michael Archimede, the securities attorneys at the White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.

Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.

For more information, please visit our website, whitesecuritieslaw.com.