DAVID HARRY, MICHAEL BAUDO - Investment Adviser

Investment Adviser Public Disclosure SEC and NASAA logo Image

Investment Adviser Search
Investment Adviser Data
Form ADV Data
Resources
Investment Advisor Representative
Report Summary

Individual
Firm

When communicating online or investing with any professional, make sure you know who you’re dealing with. Imposters might link to sites like BrokerCheck from phishing or similar scam websites, or through social media , trying to steal your personal information or your money. Please contact FINRA with any concerns.

< Back to Results

Detailed ReportReport

DAVID HARRY, MICHAEL BAUDO

DAVID BAUDO

CRD#: 3187137

Previous Investment Adviser

Previous Broker

BARRED BY FINRA OR THE SEC

FINRA has barred this individual from acting as a broker or otherwise associating with a broker-dealer firm.

The representative was previously registered both as an investment adviser and as a broker. Visit BrokerCheck for more information on this individual's Broker record. Go to BrokerCheck Site

Licenses

Licenses

0 Licenses

Registration History

Disclosure(s)

View By:

5/16/2011

Regulatory

Final

Initiated By

FINRA

Allegations

FINRA RULES 2010, 8210, NASD RULES 2110, 2310, 3040, INTERPRETATIVE MATERIAL 2310-2: BAUDO, AS THE BROKER OF RECORD ON THE ACCOUNT OF TWO CUSTOMERS, A MARRIED COUPLE, AT HIS MEMBER FIRM, RECOMMENDED THAT THE CUSTOMERS INVEST APPROXIMATELY $167,000-ALL OF THE FUNDS IN THEIR ACCOUNT-IN A START-UP COMPANY THAT SOUGHT TO OPERATE AN INDEPENDENT BRANCH OF ANOTHER BROKER-DEALER. THE RECOMMENDED SECURITY WAS SUPPOSED TO PAY ANNUAL INTEREST OF 7% ON A QUARTERLY BASIS OVER A FIXED TERM. BAUDO RECOMMENDED THAT THE CUSTOMERS INVEST IN THE COMPANY AFTER HE GATHERED INFORMATION ABOUT THE COMPANY AND INVESTMENT FROM A FORMER BUSINESS COLLEAGUE, WHO WAS THE FOUNDER AND SOLE PRINCIPAL OF THE COMPANY. BASED ON BAUDO'S RECOMMENDATION, THE CUSTOMERS LIQUIDATED THE SECURITIES IN THEIR ACCOUNT AND INVESTED THE PROCEEDS, WHICH WERE APPROXIMATELY $167,000, IN THE COMPANY. PRIOR TO PARTICIPATING IN THE PRIVATE SECURITIES TRANSACTION, BAUDO DID NOT NOTIFY HIS FIRM OF HIS PROPOSED ROLE IN THE TRANSACTION. IN ADDITION, BAUDO DID NOT HAVE REASONABLE GROUNDS TO BELIEVE THAT THE RECOMMENDED INVESTMENT IN THE COMPANY WAS SUITABLE FOR THE CUSTOMERS IN LIGHT OF THEIR INVESTMENT OBJECTIVES, FINANCIAL SITUATION AND NEEDS. THE RECOMMENDED INVESTMENT WAS TOO RISKY FOR THE CUSTOMERS, A RETIRED COUPLE OF LIMITED MEANS. FURTHER, THE RECOMMENDATION LED TO MOST OF THEIR INVESTABLE ASSETS BEING OVERCONCENTRATED IN THE SECURITY. PRIOR TO ITS DISSOLUTION IN 2010, THE COMPANY MADE INTEREST AND PRINCIPAL PAYMENTS TOTALING APPROXIMATELY $26,000 TO THE CUSTOMERS, WHO HAVE LOST APPROXIMATELY $141,000 ON THEIR INVESTMENT IN THE COMPANY. LASTLY, BAUDO FAILED TO RESPOND COMPLETELY TO FINRA REQUESTS FOR INFORMATION AND DOCUMENTS.

Resolution

Acceptance, Waiver & Consent(AWC)

Bar

Bar (Permanent)

Registration Capacities Affected

All Capacities

Duration

Indefinite

Start Date

5/16/2011

Regulator Statement

WITHOUT ADMITTING OR DENYING THE FINDINGS, BAUDO CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY.

Previous Registration(s)

th hidden text	th hidden text	Name	Location
IA	10/24/2008 - 06/15/2009	INVESTORS CAPITAL ADVISORY (CRD#:30613)	ALTAMONTE SPRING, FL
IA	11/29/2006 - 12/12/2007	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (CRD#:7691)	HEATHROW, FL

INVESTORS CAPITAL ADVISORY (CRD#:30613)

ALTAMONTE SPRING, FL

10/24/2008 - 06/15/2009

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (CRD#:7691)

HEATHROW, FL

11/29/2006 - 12/12/2007

For additional information about investment advisers or broker-dealers, please visit

www.investor.gov

Broker

A brokerage firm, also called a broker-dealer, is in the business of buying and selling securities – stocks, bonds, mutual funds, and certain other investment products – on behalf of its customer (as broker), for its own bank (dealer), or both. Individuals who work for broker-dealers - the sales personnel are commonly referred to as brokers.

Investment Adviser

An investment adviser is paid for providing advice about securities to clients. In addition, some investment advisers manage investment portfolios and offer financial planning services.

Disclosures

Disclosures can be customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and certain civil or criminal proceedings that they were a part of.