Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Michael Shoniker (Shoniker), previously associated with Paychex Securities Corporation, has at least one disclosable event. These events include one tax lien, alleging that Shoniker recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on December 02, 2024.
Without admitting or denying the findings, Shoniker consented to the sanctions and to the entry of findings that he did not timely and fully disclose to his member firm his OBA. The findings stated that Shoniker formed a company to invest in real estate but did not disclose the company to his firm for four months. Shortly after disclosing the real estate business to his firm, Shoniker used it to provide consulting and marketing services to a third-party investment advisor. Shoniker began referring customers of his firm to the advisor for compensation. Shoniker also began working with the advisor to obtain customers for them and received referral for himself and his firm. In exchange for Shoniker’s referrals and consulting and marketing services, the advisor paid Shoniker, through Shoniker’s company, half of the investment advisory fees, less expenses, that it received from over 96 customers of Shoniker’s firm. Shoniker received compensation of approximately $740,000 from the advisor for referrals and consulting and marketing services. Shoniker submitted to his firm OBA forms that described his company as a real estate business but did not describe the referral, consulting, or marketing services he provided to the advisor. In addition, Shoniker submitted five annual compliance questionnaires in which he falsely stated that he provided no financial consulting services to any third party and that he had completely and accurately disclosed his OBAs to his firm.
