Mirsad Muharemovic, Formerly with Arive Capital Markets, Suspended
CORAM, NEW YORK
Have you lost money while investing with financial advisor Mirsad Muharemovic, who previously worked with Arive Capital Markets in Coram, New York? Our securities arbitration law firm is looking into claims made against Mirsad Muharemovic. FINRA has been investigating whether Muharemovic had been excessively trading or churning a customer’s account.
FINRA’s AWC with Muharemovic alleges that he excessively traded two customer accounts between August 2016 and March 2019. The turnover ratio for both accounts was above what was considered to be excessive.
The cost-to-equity ratio of the two accounts was 54% and 74%, respectively. An account with a 54% cost-to-equity ratio means that the account had to make 54% just to break even from the costs of trading. To settle these allegations, Muharemovic agreed to a nine-month suspension, a $5,000 fine, and $211,000 in restitution to the affected customers. Brokers who are required to pay large amounts of restitution rarely comply with orders like these.
Mirsad Muharemovic was a representative of Arive Capital Markets in a Coram, New York office from June 2016 to November 2022. There are also three customer complaints made against Muharemovic.
Stockbrokers must follow FINRA’s rules, including Rule 2111. This rule provides that brokers have to make suitable investment recommendations. Rule 2111 also includes that trades are quantitatively suitable – that trades, taken together, are proper for a customer. Trading accounts with high cost-to-equity ratios is likely unsuitable because it makes it nearly impossible for an account to make a profit.
Israels & Neuman has offices in Denver, Colorado; Seattle, Washington; Phoenix, Arizona; and Ann Arbor, Michigan. We represent investors in FINRA arbitration proceedings all over the country. Our attorneys have represented over one thousand investors against many brokerage firms in the past.
View Muharemovic, m BrokerCheck 12.8.22
If you lost money with Mirsad Muharemovic or Arive Capital Markets, contact the law firm of ISRAELS & NEUMAN at (720) 599-3505 or (206) 795-5798 for a Free evaluation of your case.