The seriousness of an allegation cannot be understated, especially when it involves the financial sector. The allegation against Damian Baird, a former broker with Morgan Stanley and Moors & Cabot, Inc., is a case in point. Baird has been named as a respondent in a Financial Industry Regulatory Authority (FINRA) complaint, alleging that he failed to cooperate with two separate FINRA investigations into his conduct. The gravity of these allegations is significant and has serious implications for both Baird and his former clients.
Understanding the Allegation and FINRA Rule
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The allegation against Baird is twofold. Firstly, he allegedly failed to provide information and documents requested by FINRA. Secondly, he reportedly failed to appear for on-the-record testimony as part of the investigations. These investigations were related to discovery in FINRA arbitrations and separate allegations that Baird may have altered a customer check and attempted to convert customer funds. Baird’s alleged failure to cooperate with these investigations not only impedes FINRA’s ability to conduct a thorough investigation but also violates FINRA Rule 8210.
This rule requires all persons associated with a FINRA member to provide information orally, in writing, or electronically if requested as part of an investigation, complaint, examination, or proceeding. Non-compliance with this rule is a serious violation and can result in severe penalties.
Why It Matters for Investors
Allegations of this nature are of paramount importance to investors. A broker’s failure to cooperate with a FINRA investigation raises serious concerns about their transparency and integrity. Moreover, the allegation that Baird may have altered a customer check and attempted to convert customer funds is a direct threat to investor assets. Such behavior, if proven, indicates a severe breach of trust and can result in substantial financial losses for the affected clients.
Red Flags for Financial Advisor Malpractice
- Failure to cooperate with regulatory investigations
- Allegations of altering client documents or funds
- Switching between brokerage firms frequently
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the advisor and company. They offer free consultations to clients and have a “No Recovery, No Fee” policy. With over 50 years of experience, successful financial recoveries for investors, and an impressive 98% success rate, they are well-equipped to help victims of financial malpractice. Contact them today at their toll-free consultation number 1-800-856-3352.
How FINRA Arbitration Can Help
FINRA Arbitration is a streamlined, efficient way for investors to recover losses caused by broker misconduct. It is a legally binding process where a neutral third party, the arbitrator, reviews the evidence and makes a decision. If the decision is in favor of the investor, the broker and their firm can be ordered to pay damages. Haselkorn & Thibaut specializes in representing investors in FINRA arbitration proceedings, and their expertise can significantly increase the likelihood of a successful recovery.
