FINRA Suspends Broker Michael Pina After Borrowing From Four Clients

Michael Pina (Michael Kris Pina CRD#: 5922058) is a former registered broker whose last known employer was PFS Investments Inc. (CRD#:10111) of Fort Lauderdale, FL. He has been in the industry since 2011, and began working with PFS in 2013.

A client filed a dispute on 2/4/2019 alleging that she gave Pina a check for $20,000, under the impression that it was to be invested. The firm settled for the damages requested, which was $20,000.

On 3/7/2019, PFS Investments allowed Pina to resign after he admitted borrowing $20,000 from a client. The firm terminated his registration in a Form U5 filed with FINRA, disclosing the circumstances of his termination. Based on the Form U5, FIRNA began its investigation.

FINRA found that while Pina was associated with PFS, he borrowed a total of $72,000 from four of his clients. This is a violation of a number of FINRA rules, including Rule 3240, which prohibits borrowing from clients except under strict rules. PFS’s policy strictly prohibited borrowing money from clients under any circumstances.

Pina used an entity over which he had control to borrow the money from his four PFS customers. He issued an oral promise to repay the principal and a mutually agreed amount of interest on each amount. Additionally, Pina did not execute a loan agreement or other written instrument to document these loans.

Stockbrokers Like Michael Pina Are Not Permitted to Borrow Money From Customers

Two of the PFS clients have been repaid in full as Pina promised. However, Pina still owed money to the other two clients at the time of the suspension. He owed $7,500 of principal to one client and $12,300 in principal to another.

In January of 2019, Pina also failed to disclose these loans to PFS in the firm’s annual compliance questionnaire. He falsely claimed that he had not borrowed any money from any firm client, either his own or someone else’s.

As part of the sanctions imposed by FINRA, Pina is subject to:

A 16-month suspension from association with any FINRA member in any capacity
An administrative fine of $10,000
Restitution for both clients in the amount of $19,800

Under the terms of the Acceptance, Waiver & Consent letter Pina signed, his suspension began on October 5, 2020, and ends on 2/4/2022.

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Have You Invested With Michael Pina?

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