Securities Lawyers Blog
Our firm is investigating claims made by The Financial Industry Regulatory Authority (FINRA) against broker Michael Barranco (Barranco). According to BrokerCheck records Barranco is subject to one regulator complaint, one employment separation for cause, and one financial disclosure. The FINRA regulatory matter concerns an investigation surrounding alleged sales of private securities transactions. (FINRA No. 2015048273301).
According to FINRA, between 2010 and 2015, Barranco was involved in almost 40 private securities transactions with three different issuers. In 2010, Barranco requested and received permission from LPL to act as a consultant and provide business planning advice to an entity (TMG) founded by two of his customers. FINRA found that Barranco also participated in the solicitation of investments by firm customers and others in 13% Senior Notes issued by TMG,
FINRA found that between November 2010 and February 2011, Barranco participated in 35 transactions through which 27 individuals invested at least $2,087,000 in the TMG notes. In addition, FINRA also found that in 2014, the founders of TMG purchased a distressed real estate development (IBH) and issued 12% Senior Notes which Barranco recommended to two of his customers who invested $750,000. The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.