Securities Arbitration Lawyer Blog
Michael Joseph Hernandez is a stockbroker with Arive Capital Markets LLC (“Arive Capital Markets”) in Brooklyn, New York. Mr. Hernandez has a history of associations with disreputable broker-dealers and at least one customer complaint, employment termination, and regulatory sanction.
If you have lost money with broker Michael Hernandez 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
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.
Mr. Hernandez is one of the brokers who had serious incidents reported on his BrokerCheck report.
Financial Advisor Michael Hernandez (CRD No. 2295660)
Mr. Hernandez has 20 years of experience in the securities industry and has been associated with ten different broker-dealers. He averages approximately two years at each stop. In December 2016, he was hired by Arive Capital Markets.
Regulatory Sanction
In 2006, NASD, the predecessor to the Financial Industry Regulatory Authority (“FINRA”), suspended Mr. Hernandez for failing to comply with an arbitration award or settlement agreement or to satisfactorily respond to an NASD request to provide information concerning the status of compliance.
Prior Associations
Mr. Hernandez has been associated with ten different brokerage firms in his career, including three past associations with firms expelled by FINRA. Mr. Hernandez has been affiliated with the following brokerage firms:
- Arive Capital Markets in Brooklyn, New York, from December 2016 – the present.
- EDI Financial, Inc. in Irving, Texas, from January 2011 – December 2016 (expelled by FINRA).
- CAC Capital Corp in Dallas, Texas, from March 2005 – September 2006.
- Compass Brokerage, Inc., in Birmingham, Alabama, from November 2001 – April 2002.
- UBS Painewebber Inc., in Weehawken, NJ, from December 2000 – October 2001.
- Prudential Securities Incorporated, in New York, NY, from February 1996 – January 2001.
- Strategic Resource Management, Inc., in Aurora, Colorado, from March 1995 – January 1996 (expelled by FINRA).
- B. Mckee Securities, Inc., in Scottsdale, Arizona, from June 1994 – March 1995.
- Reynolds Kendrick Stratton, Inc. from June 1993 – June 1994.
- Chelsea Street Securities, Inc. from February 193 – June 1993 (expelled by FINRA).
Employee Separation After Allegations
In 2002, Compass Brokerage, Inc. fired Mr. Hernandez for violating firm and affiliate bank policy regarding the management of personal bank accounts and company credit card.
Customer Complaint
In 2005, a customer alleged that her investment portfolio lacked diversification and contained reckless risk-taking. The dispute was settled by the firm that employed Mr. Hernandez when the alleged conduct occurred.
Criminal Disclosures
Mr. Hernandez’s BrokerCheck discloses two criminal events.
In 2003, Mr. Hernandez was charged in Dallas, Texas, with misdemeanor theft of a check valued between $20 and $500. The charges were dismissed.
In 2004, Mr. Hernandez was charged in Dallas, Texas, with felony possession and delivery of a controlled substance. All charges were dismissed in 2010 following the successful completion of the terms of deferred adjudication.
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 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 Michael Hernandez or Arive Capital Markets and either sustained financial losses or suspect that Mr. Hernandez 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.