Haselkorn & Thibaut, P.A., operating as Investment Fraud Lawyers, closely tracks FINRA arbitration awards that expose how broker-dealers can be held responsible for misconduct tied to their registered representatives. A recent award against Arkadios Capital shows how that liability can extend even to investors who never opened an account at the firm. A FINRA arbitration panel ordered the Atlanta-based broker-dealer to pay approximately $2.7 million in damages to Candyce Myers, an elderly investor who lost money in a decades-long Ponzi scheme run by Edwin Emmett Lickiss Jr. Myers was never a customer of Arkadios. The award was based on the firm’s relationship with Lickiss’s son, Michael Lickiss, a registered representative at Arkadios Capital from late 2021 through mid-2024.
The case highlights a critical point for defrauded investors: a broker-dealer can face liability for failure to supervise even when the direct fraudster is an outside party. We help investors understand these claims and recover losses when firms miss red flags they should have caught.
What the FINRA arbitration panel found
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The Financial Industry Regulatory Authority, or FINRA, operates the largest securities dispute-resolution forum in the United States. FINRA arbitration panels hear claims between investors and broker-dealers, and their awards can be confirmed as court judgments. In this matter, the panel heard four days of testimony and evidence before issuing an award against Arkadios Capital.
Candyce Myers alleged that Arkadios failed to supervise Michael Lickiss during his time at the firm. The claim also raised negligence and selling-away concerns tied to activities connected to his father’s investment operation. The panel awarded Myers $2.7 million in compensatory damages, matching the amount she had sought as compensation for her losses. Reports from InvestmentNews, Barron’s, and the claimant’s counsel at Silver Law Group described the award as an unusual outcome because Myers had no direct customer relationship with Arkadios.
Arkadios’s lead attorney called the ruling “utterly unfathomable” and said the firm would ask a federal court to vacate or reverse the award. On June 11, 2026, Silver Law Group filed a petition to confirm the arbitration award as a federal judgment in the Northern District of California, case number 3:26-cv-05696.
The Edwin Lickiss Ponzi scheme
Edwin Emmett Lickiss Jr. ran what federal prosecutors describe as a classic Ponzi scheme from about 1998 through September 2024. He operated Foundation Financial Group in the East Bay area of California and used the firm’s letterhead to issue fraudulent promissory notes. He told investors he could place their money in exclusive, safe, tax-free bonds with annual returns exceeding 20 percent. Instead, he paid earlier investors with funds from later investors and diverted additional money to personal expenses.
In May 2024, Lickiss pleaded guilty to one count of wire fraud and one count of money laundering. Federal prosecutors stated the scheme defrauded more than 93 investors of at least $9.5 million. He used victim funds for cash withdrawals, home renovations, travel, vehicle payments, mortgages, and personal credit-card bills. At the time of the Arkadios arbitration coverage, he had not yet been sentenced.
Michael Lickiss and his role at Arkadios Capital
Michael Jerome Lickiss, Edwin’s son, is a registered representative and investment adviser with CRD number 5135936. BrokerCheck records show he was registered with Arkadios Capital and Arkadios Wealth Advisors from December 6, 2021, through July 5, 2024, working from the firm’s Danville, California office. Before that, he was registered with Purshe Kaplan Sterling Investments from July 2024 to January 2025.
His regulatory record shows multiple customer disputes, including a $1.5 million global settlement reached in April 2024 that also involved a predecessor-in-interest relationship with Foundation Financial Group. According to public reports, his BrokerCheck profile reflects several pending investor complaints with claimed damages in the hundreds of thousands of dollars and higher.
Key facts and figures
| Party | Role | Key detail |
|---|---|---|
| Arkadios Capital | Respondent broker-dealer | Ordered to pay ~$2.7 million to non-customer victim |
| Candyce Myers | Claimant / investor | Awarded $2.7 million in compensatory damages |
| Edwin Emmett Lickiss Jr. | Ponzi scheme operator | Pleaded guilty to wire fraud and money laundering |
| Michael Jerome Lickiss | Former Arkadios rep | CRD 5135936; registered 12/2021 to 07/2024 |
| Foundation Financial Group | Lickiss’s former firm | Used to issue fraudulent promissory notes |
| Silver Law Group | Claimant’s counsel | Filed petition to confirm award June 11, 2026 |
| Metric | Amount / figure |
|---|---|
| FINRA arbitration award | $2.7 million in compensatory damages |
| Total Lickiss scheme losses (DOJ) | At least $9.5 million |
| Number of Lickiss victims | More than 93 investors |
| Promised returns | 9% to 32% per year, some exceeding 20% |
| Michael Lickiss settlement | $1.5 million global settlement (April 2024) |
| Federal confirmation case | N.D. Cal. 3:26-cv-05696 |
Why this award matters for investors
This award is significant because it extends broker-dealer liability beyond the firm’s own customer list. The panel found that Arkadios Capital’s supervisory obligations were broad enough to cover harm linked to a registered representative’s outside conduct. That is not a routine outcome, and it will likely be tested in federal court if Arkadios succeeds in challenging the award.
For investors, the case is a reminder to look at the entire chain of relationships that touch their money. A financial advisor may introduce them to products, people, or opportunities that sit outside the firm where the advisor is registered. When those side arrangements cause losses, the registered firm’s supervision, training, and response can become central questions in a recovery claim.
What investors can do after a Ponzi or selling-away loss
If you lost money to an advisor who steered you toward an outside investment, or if a broker-dealer failed to catch warning signs in a representative’s conduct, several recovery paths may be available. FINRA arbitration often provides the fastest forum for claims against broker-dealers, and it can include claims for failure to supervise, negligence, and inadequate due diligence. In some cases, investors may also pursue claims against the individual fraudster, third-party promoters, or clearing firms.
Time limits apply. FINRA arbitration claims generally must be filed within six years of the event giving rise to the dispute, but shorter deadlines can apply under state law. Preserving account statements, emails, promissory notes, and other records early can make a meaningful difference in the strength of a claim.
How we can help
Haselkorn & Thibaut, P.A., operating as Investment Fraud Lawyers, represents investors who have suffered losses due to Ponzi schemes, unsuitable recommendations, and broker-dealer failures to supervise. Our partners are former Wall Street defense attorneys who now use that experience to advocate for individual investors. We work on a contingency basis, which means no recovery, no fee.
If you or someone you know lost money in connection with Edwin Lickiss, Foundation Financial Group, Michael Lickiss, or Arkadios Capital, contact our office at 1-888-885-7162 or visit InvestmentFraudLawyers.com for a confidential review. Past results do not guarantee future outcomes.
