FINRA Bars Broker Michael Archimede After Customer Loans

Michael Archimede (CRD# 5701306) is a former registered broker and investment advisor previously employed with PFS Investments Inc. (CRD# 10111) of Waukesha, Wisconsin. He has been in the industry since 2010.

Archimede has seven disclosures in his CRD.

On 11/9/2023, a customer filed a dispute alleging that Archimede borrowed money and failed to repay the loan, requesting damages of $52,482.12. The dispute was settled for $66,646.47.

On 12/31/2023, PFS Investments terminated Archimede’s employment for failing to renew his securities licenses. However, during an internal review, Archimede admitted that he had borrowed money from a customer. On January 10, 2024, PFS updated the Form U5 filing to show that he was permitted to resign while under review for allegedly initiating a customer loan.

FINRA initiated a review based on the Form U5 issued by PFS Investments following his separation from their employment.

Archimede failed to respond to requests for information and documentation and appeared for on-the-record testimony related to the customer loan. The loan was reportedly connected to a potential cryptocurrency investment in an offering that Archimede was evaluating independently of PFS Investments.

When he failed to comply with the requests, FINRA issued a Letter of Acceptance, Waiver & Consent (AWC). Archimede signed the letter on 1/17/2024, which was then accepted and signed by FINRA on 1/22/2024. In it, Archimede neither admitted nor denied any findings and accepted the sanction of being permanently barred from any further affiliation with any FINRA member.

Following his AWC, another customer filed a dispute on 6/20/2024, with allegations of negligence, breach of fiduciary duty, and negligent supervision. In addition to the award, Archimede was ordered to pay:

• Attorneys’ fees of $52,000, pursuant to the terms of the promissory note signed when he took out the loan
• $300.00 to reimburse the Claimant for the filing fee previously paid to FINRA Dispute Resolution Services.
• Total discovery-related motion fees, $600
• Hearing session fees to FINRA of $1,687.50

The award remains unpaid as of 9/25/2025 by either Archimede or his firm. FINRA then suspended Archimede indefinitely until the amount is paid in full.

A separate dispute filed by a different customer on 4/28/2025 also includes allegations of an unpaid loan to Archimede during November and December of 2023, totaling $80,000. This claim is currently listed as “pending.”

The State of Wisconsin filed a separate disclosure on 10/7/2025 that permanently barred Archimede with a cease-and-desist order and ordered restitution of $100,400, as well as revocation of exemptions. In the disclosure, Wisconsin states that Archimede advised clients to sell their investments, such as stocks or annuities, so they could use the money to buy cryptocurrencies in accounts that he personally controlled. He gave clients promissory notes and account statements that were false or misleading. Archimede also failed to tell his clients that he had been fired from his brokerage firm and was no longer licensed to sell investments or provide financial advice. More details about these allegations are included in the consent order.

Should You Loan Your Broker Money?

In short, no, and for multiple reasons. Unless your broker is also your parent, child, or other close relative, loaning money to your broker or other financial professional can be fraught with problems. It’s also mostly barred by FINRA.

FINRA Rule 3240 details the prohibitions that brokers face when borrowing money from clients, and the strict conditions under which they can. Most firms have written policies detailing those conditions that must be met to borrow, such as the nature of the broker’s relationship to the lender.

While many brokers successfully repay the money they borrow, there is also the risk that they will not. You could lose that money as well as have little or no recourse for seeking a refund. Many brokers declare bankruptcy or have tax liens in their records. In one case, a broker took out multiple loans with several different clients and passed away shortly after his company terminated him for doing so. If you’re considering such a transaction, check their record in FINRA’s free BrokerCheck tool before proceeding.

Did You Invest With Michael Archimede?  

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 you.