FINRA Bars Todd Michael Lesk: Broker Faces Permanently Banned Status
Brief about Todd Michael Lesk
Todd Michael Lesk has had relationships with FINRA-affiliated organizations since 1997. As a General Securities Representative, he has been registered with them through ties with different member companies. From September 2022, he has held the same registration, along with others, through Cambridge Investment Research, Inc., a FINRA-member firm. His ongoing association with a FINRA-affiliated firm maintains his accountability to their authority.
The Financial Industry Regulatory Authority has permanently forbidden him from functioning as a broker.
Allegations
The case is an example of the violation of FINRA rules 8210 and 2010.
Customer Dispute and Todd Lesk’s Resignation
Todd Lesk, previously engaged as a certified broker and investment consultant at Cambridge Investment Research, Inc., encountered a customer dispute filed on 9/19/2023. The assertion posits that during the period between December 2021 and November 2022, Lesk dispensed inappropriate counsel, and the customer is pursuing reparations totaling $1,000,000. This assertion is presently under examination.
In the aftermath of the disagreement, Lesk tendered his resignation from Cambridge on 10/4/2023. Although Cambridge initially reported Lesk’s departure, it transpired that they were in the midst of terminating his employment due to his non-cooperation with the FINRA investigation linked to the customer discord. Cambridge ultimately acknowledged Lesk’s resignation.
Investigation and Lesk’s Non-Cooperation
FINRA instigated its scrutiny into the customer’s accusations on October 4, 2023, centering on whether Lesk proffered advice to the client regarding crypto investments that deviated from Cambridge’s sanctioned offerings. In reply to FINRA’s requisition for documentation, particulars, and on-the-record testimonies, Lesk’s legal representative communicated his dissent to comply.
Owing to Lesk’s contravention of FINRA Rules 8210 and 2010 by refusing to furnish essential documents and testimonies, he faced a permanent and enduring prescription from affiliating with any FINRA members, effective 10/06/2023, as delineated in the Letter of Acceptance, Waiver & Consent (AWC).
There are indications of a collaborative association between Todd Lesk and MJ Structured Annuities Settlements, Inc., a freshly dissolved Florida corporation. Investors allege that Lesk vended them MJ investment products linked to litigation settlements and potentially other robust assets, though such details are absent from his FINRA broker check.
The idea of ‘selling away’
The concept of “selling away” pertains to a broker vending an investment not sanctioned by their registered enterprise. This conduct is generally forbidden, and brokers are obligated to secure approval from their firm prior to partaking in such transactions. Brokers participating in unapproved investments may confront sanctions, pecuniary penalties, suspension, or enduring prohibition from practicing as a broker. Investors implicated in such transactions are exposed to hazards of securities duplicity, larceny, and plausible financial setbacks.
It is underscored that Bitcoin and other cryptocurrencies inherently constitute precarious investments, suitable solely for individuals possessing an exhaustive comprehension of their intricacies. The capricious nature of the cryptocurrency market poses a jeopardy of substantial loss for investors lacking a comprehensive understanding of these assets.
Lesk’s Non-Compliance with FINRA
FINRA looked into a complaint that one of Lesk’s clients had filed against him. The rules require individuals and entities under their jurisdiction to provide information and documents and testify under oath when requested.
On October 4, 2023, Lesk refused to abide by their requests for information, testimony, and document production. This refusal is a violation of FINRA Rules 8210 and 2010.
Lesk agreed to a bar on associating with any of their members in any capacity and understood that this bar would result in a statutory disqualification, prohibiting him from working with anyone. The AWC’s penalties will go into effect on the day that FINRA specifies, and a bar or expulsion will become effective upon acceptance or approval of the AWC.
Investigation into Broker Todd Lesk’s Alleged Misconduct
KlaymanToskes, a national investment loss law firm, is currently investigating broker Todd Lesk associated with LPL Financial and Cambridge Investment Research. Lesk has been permanently barred by the Financial Industry Regulatory Authority for failing to cooperate in their investigation related to his potential recommendation of a crypto asset investment outside of his member firm.
As per FINRA BrokerCheck, Lesk is also confronted with a customer complaint seeking $1,000,000 in damages, alleging that unsuitable investment recommendations were made. Lesk was previously a registered broker with LPL Financial from 2018 to 2022 and with Cambridge Investment Research from 2022 to 2023, based in Coral Springs, FL.
Key Points and Main Reasons
- Failure to provide information and documents: Lesk failed to provide the necessary information and documents, which led to his ban from acting as a broker.
- Selling away allegations: Lesk was accused of selling away investments, which is a prohibited practice in the brokerage industry. This tactic involves a broker selling an investment that isn’t approved by the brokerage firm, leaving the investor open to securities fraud and theft.
- Customer dispute: A customer dispute filed against Lesk alleges that he sold them MJ investment products with returns tied to a lawsuit. However, Lesk’s FINRA broker check does not refer to this company or these types of investments.
- Unapproved investments: Lesk may have recommended unapproved investments, which is another reason for his ban.
Conclusion
In conclusion, Todd Michael Lesk, a General Securities Representative with ties to FINRA-affiliated organizations since 1997, has faced significant repercussions due to alleged misconduct. The Financial Industry Regulatory Authority (FINRA) permanently barred him from functioning as a broker for violating rules 8210 and 2010, stemming from his refusal to cooperate with their investigation into a client complaint.
The investigation involved allegations of Lesk engaging in “selling away” practices, recommending unapproved investments, and facing a customer dispute seeking $1,000,000 in damages. Lesk’s failure to provide essential information and documents further contributed to his ban from acting as a broker. This case underscores the importance of adherence to regulatory rules and the severe consequences that individuals may face for non-compliance within the financial industry.
