Former Raymond James broker Michael Magruder has been permanently barred from the securities industry following allegations that he accepted undisclosed loans from customers and failed to cooperate with regulatory investigations. The bar marks the culmination of a troubled regulatory history that includes multiple suspensions, a termination for cause, and more than $1.6 million in settlements paid to resolve customer disputes involving loans and unauthorized trading.
If you or someone you know has suffered significant investment losses working with Michael Magruder, Raymond James, or another brokerage firm, don’t hesitate to reach out to Meyer Wilson Werning today. Our attorneys are experienced in securities fraud cases and will help to guide you through the process with a free and confidential consultation to determine whether your losses are the result of actionable misconduct.
Michael Magruder Barred for Failure to Cooperate
On June 27, 2025, FINRA permanently barred Michael Magruder from associating with any FINRA member in all capacities. The sanction stemmed from an investigation into whether Magruder had obtained loans from customers without notice to, or approval from, his member firms.
According to regulatory records, FINRA requested documents and information material to its investigation, such as financial account statements. While Magruder initially submitted an incomplete response, he ultimately failed to produce the complete information requested. Without admitting or denying the findings, he consented to the sanction.
This permanent bar serves as the most severe disciplinary action available to FINRA, effectively ending Magruder’s career in the securities industry.
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A Pattern of Settlements and Customer Complaints
The regulatory action against Magruder was accompanied by a wave of costly customer disputes settled in 2024 and 2025. These complaints largely center on allegations that Magruder borrowed money from clients—a practice generally prohibited without strict firm approval—and failed to repay those loans or followed improper trading instructions.
Significant settlements reported on his record include:
- August 26, 2025: A dispute involving allegations that Magruder borrowed money and “absconded” with it was settled for $290,725.00.
- June 12, 2025: A former client alleged Magruder convinced him to lend money and exercised discretion to sell securities to fund the loan. This claim was settled for $720,000.00.
- May 29, 2025: A claimant alleged they loaned money to Magruder that was not repaid, resulting in a settlement of $170,000.00.
- July 6, 2024: A dispute involving a loan and failure to follow instructions to sell a specific stock settled for $300,000.00.
- July 3, 2024: A complaint regarding an undisclosed personal loan requested by Magruder settled for $189,259.57.
In total, these settlements reflect roughly $1.67 million paid to resolve allegations of misconduct, painting a concerning picture of the interactions between Magruder and his clients.
Employment History and Termination
Michael Magruder (CRD#: 4579211) was in the securities industry from 2003 until his bar in 2025. He was most recently employed by Raymond James & Associates, Inc. in Orlando, Florida, from 2021 until his termination on July 3, 2024. Raymond James discharged him following allegations that he failed to follow firm procedures regarding the receipt of loans from customers and failed to update his Form U4.
Prior to Raymond James, Magruder’s employment history included:
- Wells Fargo Advisors, LLC in Southlake, Texas.
- Merrill Lynch, Pierce, Fenner & Smith Incorporated in Destin, Florida.
- Morgan Keegan & Company, Inc..
In addition to customer disputes, Merrill Lynch filed an arbitration claim against Magruder regarding unpaid promissory notes signed in 2015 and 2016. The firm was awarded $201,300, and Magruder was subsequently suspended in October 2024 for failing to comply with the award.
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Recovering Losses From Broker Misconduct
Brokerage firms like Raymond James have a legal duty to supervise their financial advisors to prevent misconduct, including undisclosed lending arrangements and unauthorized trading. When a firm fails to identify red flags or enforce compliance protocols, they may be liable for the resulting investor losses.
The allegations against Michael Magruder—borrowing from clients, exercising unauthorized discretion, and failing to cooperate with regulators—are serious violations of trust and industry rules. Investors who lost money due to such actions may have grounds to pursue a claim for recovery.
How Meyer Wilson Werning Helps Investors
Meyer Wilson Werning is a law firm dedicated to representing investors nationwide in securities fraud and broker misconduct cases. We handle cases on a contingency fee basis, meaning we only get paid if we recover money for you.
If you were affected by the actions of Michael Magruder, contact us today for a free and confidential consultation to verify your potential claims and discuss your next steps.
Frequently Asked Questions
Why was Michael Magruder barred by FINRA?
Michael Magruder was barred on June 27, 2025, for failing to provide complete information and documents requested by FINRA during an investigation into allegations that he obtained loans from customers without firm approval.
What allegations were made in the customer disputes against Magruder?
Clients alleged that Magruder requested personal loans that were not repaid, convinced clients to sell securities to fund these loans, and failed to follow trading instructions. These disputes resulted in settlements totaling over $1.6 million.
Can I recover money if I loaned it to my financial advisor?
Yes, you may be able to recover losses. FINRA rules generally prohibit advisors from borrowing money from clients unless specific strict conditions are met. If your advisor borrowed money and failed to repay it, or if the brokerage firm failed to supervise the advisor, you may have a claim for recovery through arbitration.
What firms did Michael Magruder work for?
Magruder was last employed by Raymond James & Associates, Inc. until July 2024. He previously worked for Merrill Lynch, Wells Fargo Advisors, and Morgan Keegan & Company.
Recovering Losses Caused by Investment Misconduct.
