Michael Cody, Former Pruco Broker, Investigated by FINRA

Michael Cody (CRD# 5056324[1]), formerly a broker registered with Pruco Securities, failed to supervise sales of unsuitable securities, according to an investigation. MDF Law is investigating the former Melville, New York-based professional for similar conduct. If you have concerns about investments in your accounts, contact us for a free consultation.

More information about the allegations against Mr. Cody follow below. This post is sourced from his BrokerCheck record, a Financial Industry Regulatory Authority profile reviewed on October 28, 2024.

FINRA Recommends Disciplinary Action

On September 20, 2024, FINRA disclosed an investigation into Mr. Cody’s conduct. According to his BrokerCheck profile, the regulator made a preliminary determination to recommend disciplinary action against him. The action would allege that he violated FINRA Rules 3110 and 2010 by failing to supervise the “unsuitable sales of illiquid securities.” No formal disciplinary action has yet been disclosed. 

What Supervisory Duties Do Broker-Dealer Firms Have?

FINRA Rule 3110[2] outlines the supervisory responsibilities of broker-dealer firms and their representatives. Generally speaking, it requires that they establish and maintain a supervisory system to oversee representatives’ conduct. The system must be “reasonably designed to achieve compliance with the applicable securities laws and regulations and FINRA rules.”

A broker-dealer firm’s written supervisory procedures, or WSPs, must establish certain individuals responsible for specific supervisory activities. These include reviews of firm business, internal communications, customer disputes, and more. Supervisory personnel must identify and act on red flags of possible rule violations by their representatives, for instance, the sale of unsuitable investments. FINRA may sanction firms or supervisory personnel who fail to adequately detect and/or respond to such red flags.

Pruco Securities’ Disciplinary History

Pruco Securities has been involved in 30 regulatory actions, according to the firm’s BrokerCheck record[3]. On December 23, 2020, for instance, the Securities and Exchange Commission undertook a disciplinary action against it. This sanction alleged that Pruco breached its fiduciary duty to advisory clients by failing to determine whether wrap fee programs were still suitable for them. The SEC censured the firm and ordered it to pay a fine of $2.5 million.

FINRA: Michael Cody Last Based in Melville, New York

Mr. Cody launched his career as a broker in 2006. That year, he registered with David Lerner Associates’ branch office in White Plains, New York. He left that firm in 2019 for NYLife Securities, which he left the following year. He joined his most recent member firm, Pruco Securities, in 2022, and worked at its Melville, New York office until 2024. Since he departed Pruco, he has not been registered as a broker. With 17 years of experience, he has completed four industry exams, including the Series 63 and the Series 24. 

Chat With an Investment Fraud Attorney Today

If you lost money working with Michael Cody, you may be qualified to file a FINRA arbitration claim for damages. Call MDF Law[4] to chat with an attorney for free, especially if there were unsuitable transactions in your account. We accept cases on a contingency basis, which means we only receive a fee if our clients recover lost funds. Call 800-767-8040 for a free consultation with our team today.