Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Mirsad Muharemovic (CRD # 3122589) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into excessive trading (churning).
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Muharemovic
Registration Background for Mirsad Muharemovic
Mr. Muharemovic first became registered in the securities industry in 1998. He was most recently registered with Coram, NY based Arrive Capital Markets (CRD # 8060) from June 2016 to November 2022. His prior registrations include Cape Securities Inc. (CRD # 7072) from June 2014 to June 2016, and J.P. Turner & Company, L.L.C. (CRD # 43177) from December 2004 to June 2014.
FINRA’s Allegations Against Mirsad Muharemovic
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated December 7, 2022 (No. 2018056483902), Mr. Muharemovic consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between August 2016 and March 2019, while he was registered through Arive, [Mr.] Muharemovic engaged in excessive and unsuitable trading, including using margin, in the accounts of Customers A and B”;
- “Between August 2016 and July 2018, [Mr.] Muharemovic recommended that Customer A place 101 trades in his account—nearly all of which were executed using margin—and Customer A routinely accepted Muharemovic’s recommendations”;
- “As a result of [Mr.] Muharemovic’s unsuitable recommendations, Customer A had a loss of approximately $185,966”;
- “During the relevant period, [Mr.] Muharemovic engaged in excessive trading in two accounts Customer B held at Arive”;
- “Between October 2016 and January 2019, [Mr.] Muharemovic recommended that Customer B place 29 trades—most of which were executed using margin—in the first account, and Customer B routinely accepted [Mr.] Muharemovic’s recommendations”;
- “Between December 2017 and March 2019, [Mr.] Muharemovic recommended that Customer B place 35 trades—all of which were executed using margin—in the second account, and Customer B routinely accepted [Mr.] Muharemovic’s recommendations”;
- “Collectively, the trades that [Mr.] Muharemovic recommended in the two accounts caused Customer B to pay approximately $64,658 in commissions and fees and another $9,680 in margin interest for a total of approximately $74,338”; and
- By virtue of his actions, Mr. Muharemovic violated FINRA Rule 2111 regarding suitability and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Suspends Mirsad Muharemovic from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s December 7, 2022 AWC also indicates that Mr. Muharemovic consented to the following sanction(s):
- A nine-month suspension from association with any FINRA member in all capacities;
- A fine in the amount of $5,000.00; and
- Restitution in the amount of $211,643.00 plus interest.
Mirsad Muharemovic Has A History of Securities Industry Customer Complaints
In addition to Mirsad Muharemovic being suspended by FINRA from the securities industry regarding excessive trading (churning), FINRA BrokerCheck for Mr. Muharemovic reveals that he has a history of customer complaints and/or customer-initiated arbitrations including but not necessarily limited to the following:
- On June 2, 2001 a customer-initiated arbitration was filed naming Mr. Muharemovic as a respondent regarding alleged actions that occurred while he was associated with Seaboard Securities, Inc. The customer’s allegations included misrepresentations and omissions of material facts, high pressure sales tactics, excessive trading, failure to diversify, fraud, negligence and breach of fiduciary duty. The customer further alleged damages in the amount of $115,000.00. On September 24, 2002, the arbitration panel rendered an award for the customer in the amount of $35,000.00.
- On August 13, 2019 a customer-initiated arbitration was filed naming Mr. Muharemovic as a respondent regarding alleged actions that occurred while he was associated with Arrive Capital Markets. The customer’s allegations included churning, excessive trading and unsuitability. The customer further alleged damages in the amount of $307,042.00. On May 21, 2021 the arbitration was settled in the amount of $115,000.00 with Mr. Muharemovic personally responsible for $18,445.00 of the settlement amount.
- On July 6, 2018 a customer-initiated arbitration was filed naming Mr. Muharemovic as a respondent regarding alleged actions that occurred while he was associated with Arrive Capital Markets. The customer’s allegations included unsuitability. The customer further alleged damages in the amount of $1,000,000.00. On Octonber 23, 2020 the arbitration was settled in the amount of $72,500.00.
If you or someone you know has or had a brokerage account with Mirsad Muharemovic and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.
