Bad news for former Ponte Vedra broker Michael J. DiMare. The Financial Industry Regulatory Authority (FINRA) announced today that it had permanently barred him from the securities industry for misappropriating over $1.9 million in client funds.
"FINRA will continue to bar individuals who engage in deceit and theft with no regard for the high standards of ethical conduct that govern the industry," James S. Shorris, FINRA Executive Vice President and Executive Director of Enforcement, said in a statement. "By deceiving customers into believing they were making legitimate investments when, in reality, he was simply enriching himself, DiMare epitomized the darkest side of the securities industry."Court records show that DiMare was a broker with hundreds of clients from 1990 to 2008. He sold investment and insurance for several firms, including John Hancock Financial Services and ING Financial Services.DiMare offered investors “tax-free corporate bonds,” securities that never existed. He told some investors the bonds were issued due to hurricanes that hit the state in 2004. He said those bonds were being offered for the first three months of 2005 at a quarterly return of about 8 percent.DiMare offered similar types of fraudulent investments to clients before 2004, as well. The investors were told they had to start fresh accounts with DiMare and couldn’t transfer any money from existing John Hancock or ING investments.DiMare deposited the money into a bank account he opened in 2001 under his name, doing business as John Hancock Financial Services. The investment firm never authorized the account.
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