Securities Arbitration Lawyer Blog
Mirsad Muharemovic is a stockbroker with Arive Capital Markets LLC (“Arive Capital Markets”) in Brooklyn, NY, with a history of customer complaints and associations with disreputable broker-dealers.
Mr. Muharemovic has 22 years of experience in the securities industry. He has been associated with nine different broker-dealers, including a past association with a firm expelled by FINRA.
Mr. Muharemovic has been the subject of three customer complaints, including one dispute that is still pending and another one resulting in an arbitration award for the complaining customer.
The pending dispute is a securities arbitration claim filed by a customer to recover over $307,042 in alleged damages. The customers alleged churning, excessive trading, and unsuitable investments.
If you have lost money with broker Mirsad Muharemovic or Arive Capital Markets, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
Arive Capital Markets
Mr. Muharemovic has been employed as a broker at Arive Capital Markets since June 2016.
According to a 2017 investigation by Reuters, Arive Capital Markets hired more brokers with a history of significant disclosures than all but two other firms in the country. In 2021, Iorio Altamirano LLP set out to update that analysis.
The investigation revealed that eighty percent (80%) of Arive Capital Markets’ brokers and supervisors have significant red flag public disclosures. Significant red flag disclosures include:
- regulatory sanctions,
- terminations of employment after allegations of misconduct,
- customer disputes that result in an award or settlement, and
- prior association with a firm that FINRA has expelled.
You can read the full investigative report here: Investigative Report: Iorio Altamirano LLP Investigation into Arive Capital Markets Reveals Troubling Pasts for Owners, Executives, and Brokers.
Financial Advisor Mirsad A. Muharemovic (CRD No. 3122589)
Mr. Muharemovic is one of the brokers who had serious incidents reported on his BrokerCheck report.
The following is a summary of some of the significant disclosures on Mr. Muharemovic’s public disclosure report:
- Prior Associations: Muharemovic has worked at nine different brokerage firms in 22 years, averaging a little over two years at each firm. One of the firms, Seaboard Securities, Inc, has been expelled by FINRA.
- Customer Complaint: In 2019, a customer filed a securities arbitration complaint against Mr. Muharemovic and Arive Capital Markets, alleging churning, excessive trading, and unsuitability. Muharemovic denies the allegations, and the complaint is pending.
- Customer Complaint: In 2018, a customer filed a securities arbitration complaint against Mr. Muharemovic and Arive Capital Markets, alleging $1 million in damages arising out of unsuitable common and preferred stock. Arive Capital Markets settled the dispute.
- Customer Complaint: In 2000, a customer filed a securities arbitration complaint alleging misrepresentation and omissions of material facts, high-pressure sales tactics, excessive trading, failure to diversify, fraud, negligence, breach of contract, and breach of fiduciary duty. An arbitration Panel found liability and awarded the customer monetary compensatory damages.
Mr. Muharemovic has a history of customer complaints, which appear to allege the use of “boiler room” tactics, including high-pressure sales tactics, excessive trading, and churning.
Excessive trading occurs when a financial advisor makes many trades in a customer’s account, not to benefit the customer but to generate commissions for the broker.
Churning is a more egregious variation of excessive trading. Churning refers to a situation where the broker executed an excessive amount of trades and did so with the intent to defraud or reckless disregard for the customer’s interest.
Excessive trading, churning, and high-pressure sales tactics are unethical and illegal. These practices are also violations of securities rules and regulations and can cause enormous harm to customers.
Arive Capital Markets, LLC – Supervisory Duties
Brokerage firms like Arive Capital Markets, LLC must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity, such as excessive trading or churning, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to sufficiently supervise its financial advisors or the investment account activity, it may be liable for investment losses sustained by customers.
How to Recover Financial Losses or Obtain a Free Consultation
If you or a loved one were a customer of Mirsad Muharemovic or Arive Capital Markets and either sustained financial losses or suspect that Mr. Muharemovic did not have your best interest in mind when recommending investments or account transactions, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.