Broker Damian Baird Suspended After Failing To Pay $1.2M Following FINRA Arbitration

Damian Baird (Damian Mark Baird CRD# 3097243) is a previously registered broker and investment advisor most recently employed with Moors & Cabot, Inc. (CRD#:594) of Boston, MA. His previous employers include Morgan Stanley (CRD#:149777) of Williamsville, NY,  UBS Financial Services Inc. (CRD# 8174) of Buffalo, NY, and  HSBC Securities (USA) Inc. (CRD# 19585) of Depew, NY. He has been in the industry since 1998.

Baird was suspended by FINRA following an arbitration proceeding in January of 2023 brought by his previous employer, Morgan Stanley. In it, Morgan Stanley alleged that he had failed to repay three notes totaling $888,403.12. FINRA requested documents and information, which Baird failed to produce. He also failed to attend the evidentiary hearing conducted via videoconference.

In his counterclaim, Baird requested punitive damages of $1M, along with attorneys’ fees and costs, and an update to his Form U5 “to reflect an accurate description of his separation” from the firm.

The panel found that Baird was liable for the entire sum requested by Morgan Stanley, along with per diem interest on all three, and most of the related FINRA fees for the filings, discovery, and hearings. This award totals approximately $1,224,928.69.

By March, Baird had failed to pay any of this award. He was then suspended indefinitely pending payment of the $1.2 million, effective 3/20/2023. The suspension will stay in force until the award is paid or otherwise discharged.

On 9/29/23 a FINRA complaint was filed with Baird as respondent, which alleged that he “failed to provide information and documents and failed to appear for on-the-record testimony requested by FINRA as a part of two separate investigations into his conduct. The complaint alleges that FINRA’s investigations were concerning discovery in FINRA arbitrations and, separately, whether Baird altered a customer check and attempted to convert customer funds. Baird’s failure to provide the requested documents and information impeded FINRA’s investigations and his testimony was material to FINRA’s investigation concerning whether he altered a customer check and attempted to convert customer funds.” The claim is pending as of this writing.

Baird also has a tax lien in his CRD, dated 12/22/2021 for $23,815.89, and a customer dispute from 2003 that settled for $49,963.06.

Customer Dispute And The Altered Check

A customer filed a dispute on 3/1/2023 alleging that Baird had attempted to commit fraud. They discovered this when their new financial advisor notified them that although they had an open account, it had not been funded. Their bank’s fraud department then notified them that the check written for $50,000 and given to Baird intended to fund the account was altered to be payable to Baird himself.

Following this discovery, the couple contacted the police departments of Erie County, NY and Tonawanda, NY about the fraud. An investigation began on the same day and is ongoing. The Tonawanda Police Department is handling the investigation and the case was also referred to the Erie County, NY Assistant District Attorney’s office.

On 9/13/23 a customer dispute alleged “unsuitability regarding the recommendation of a line of credit for private real estate deals. Claimant further alleges misrepresentation and fraud with respect to handling of Claimant’s investment accounts.” The claim is pending as of this writing.

Previous DWI And Failure To Disclose

Baird has a DWI in New York from 4/19/2007 in his CRD disclosures. He was arrested on two charges:

1. Driving while intoxicated in violation of Section 1192.2,1193-1ci of the Vehicle and Traffic law
2. Driving while intoxicated in violation of Section 1192-3, 1193-1 of the Vehicle and Traffic law

The first charge was dismissed, and the second reduced to a misdemeanor, to which he pled guilty.

When Baird applied for a securities license in Florida in 2014, he failed to mention this incident on his application. This omission is a “material false statement,” leading to Florida’s Office of Financial Regulation to deny his application on 8/7/2014. Baird accepted the sanction without admitting or denying the allegations. The state allowed him to resubmit a new application.

Did You Invest With Damian Baird?

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.