Our firm is investigating potential investor claims involving former Reid & Rudiger LLC stockbroker Clifford Ronald Reid (CRD# 1905920), formerly of New York, New York.
On June 17, 2026, FINRA permanently barred Reid from associating with any FINRA member firm in any capacity. FINRA also expelled Reid & Rudiger from FINRA membership. Reid is not currently registered as a broker.
Investors who suffered losses because of excessive trading, churning, unsuitable recommendations, excessive commissions, or supervisory failures may wish to consult an experienced investment fraud lawyer about their potential recovery options.
Most brokerage-account disputes are pursued through FINRA arbitration rather than traditional court litigation. An experienced FINRA arbitration lawyer can reconstruct the account’s trading history, calculate turnover and cost-to-equity ratios, analyze commissions and margin interest, prepare the Statement of Claim, and represent the investor through discovery, settlement negotiations, and the arbitration hearing.
Clifford Ronald Reid’s Career History
According to the uploaded FINRA BrokerCheck report, Clifford Ronald Reid began his securities industry career with First Investors Corporation in Edison, New Jersey from September 1989 through December 1991, then moved to Gruntal & Co. Incorporated in New York, New York from December 1991 through November 1994, followed by Nichols, Safina, Lerner & Co. Inc. in New York, New York from November 1994 through January 1998. Since March 1999, he has been associated with Reid & Rudiger LLC in New York, where the report lists branch locations at 40 Wall Street, Suite 1708, New York, New York 10005, and 55 Broad Street, 28th Floor, New York, New York 10004.
Clifford Ronald Reid Fraud Allegations and Investor Complaints Explained
FINRA BrokerCheck reflects one pending regulatory action and nine customer disputes for Reid. BrokerCheck also notes that pending matters involve allegations that may be contested, unresolved, or unproven. The most significant current disclosure is a FINRA complaint initiated on March 3, 2026, docket no. 2019060647601, alleging that Reid and others willfully violated Section 10(b) of the Exchange Act and Rule 10b-5 through churning, and also violated Regulation Best Interest, FINRA Rule 2111, and FINRA Rule 2010 through excessive trading and unsuitable recommendations. The complaint states that the strategy allegedly generated collective costs of $548,566.77, including $499,251.80 in commissions, and caused realized losses of $1,104,850.61 on accounts with an aggregate average monthly value of $365,402.34.
More recent customer disputes shown on the report include a pending FINRA arbitration filed on September 22, 2025, docket no. 25-02025, alleging breach of fiduciary duty, negligence, and excessive trading, with no specific damages stated, and another pending FINRA arbitration filed on February 6, 2023, docket no. 23-00295, alleging unsuitability, excessive trading and commissions, failure to supervise, and breach of fiduciary duty, again without a specific compensatory amount listed. Reid’s BrokerCheck report states that he denied wrongdoing in both matters.
The report also lists several settled matters. A 2019 FINRA arbitration, docket no. 19-02676, alleged unsuitability, excessive trading, failure to supervise, and breach of fiduciary duty, claimed damages of $218,388, and was settled on August 2, 2021 for $21,000 with no individual contribution listed for Reid. Another 2019 matter, docket no. 18-04303, alleged that a stop-loss order was not placed, claimed $250,000 in damages, and settled on August 14, 2019 for $120,000, again with no individual contribution listed. Older disclosures from Reid’s time at Nichols, Safina, Lerner & Co. include allegations involving breach of fiduciary duty, failure to execute sell orders, poor service resulting in financial loss, and guarantee-of-profits allegations. Those older matters show claimed damages ranging from $31,375 to $362,258, with several settlements between $3,000 and $20,000, while one guarantee-of-profits complaint was withdrawn with no payment shown.
Below is a disclosure summary taken from the uploaded BrokerCheck report:
- 03/03/2026 – FINRA complaint, docket no. 2019060647601: alleged churning, excessive trading, unsuitable recommendations, and Reg BI-related misconduct at Reid & Rudiger LLC; status: pending.
- 09/05/2019 / complaint received 09/23/2019 – FINRA arbitration no. 19-02676: alleged unsuitability, excessive trading, failure to supervise, and breach of fiduciary duty; alleged damages: $218,388; disposition: settled 08/02/2021 for $21,000; individual contribution: $0.
- 01/17/2019 / complaint received 01/19/2019 – FINRA arbitration no. 18-04303: alleged failure to place a stop-loss order; alleged damages: $250,000; disposition: settled 08/14/2019 for $120,000; individual contribution: $0.
- 12/02/1998 – Court of Common Pleas for Philadelphia County: alleged breach of fiduciary duty; alleged damages: $31,375; disposition: settled 08/27/1999 for $7,500; individual contribution: $7,500.
- 02/19/1998 – NASD arbitration no. 98-00688: alleged failure to execute an order to sell 21,000 shares of Rankin Automotive Group stock, with claimed losses of $253,149 plus lost profits of $109,109; alleged damages: $362,258; disposition: settled 04/27/1999 for $9,000; individual contribution: $9,000.
- 09/04/1997 – NASD case no. 97-02690: executions-related complaint involving common stock; alleged damages: $39,000; disposition: settled 07/30/1999.
- 06/17/1997 / NASD arbitration no. 98-01701: alleged unsuitable recommendations, breach of fiduciary duty, and failure to follow instructions regarding Rankin Automotive Group; alleged damages: $211,750 plus interest, costs, and punitive damages; disposition: no action on 12/11/1998, with the report also reflecting a $20,000 settlement and Reid’s removal from the arbitration.
- 06/01/1997: failure-to-follow-instructions complaint with unspecified damages; status shown in report: closed/no action.
- 06/01/1997: guarantee-of-profits allegation; disposition: withdrawn 12/15/1997; settlement: $0.
- 09/22/2025 / complaint received 10/02/2025 – FINRA arbitration no. 25-02025: alleged breach of fiduciary duty, negligence, and excessive trading; damages: not specified; status: pending.
- 02/06/2023 / complaint received 02/14/2023 – FINRA arbitration no. 23-00295: alleged unsuitability, excessive trading and commissions, failure to supervise, and breach of fiduciary duty; damages: not specifically stated; status: pending.
The BrokerCheck report reflects a long industry tenure, but it also shows a meaningful pattern of customer disputes and a current FINRA complaint centered on churning, excessive trading, and suitability-related allegations. To obtain a copy of Clifford Ronald Reid’s FINRA BrokerCheck report, visit this link.
Robert Wayne Pearce Is Committed to Recovering Your Investment Losses
FINRA Rule 2111: Suitability
FINRA Rule 2111 historically required brokers to have a reasonable basis for believing that a recommended securities transaction or investment strategy was suitable for the customer.
Rule 2111 remains in effect but generally does not apply to retail recommendations governed by Regulation Best Interest after June 30, 2020. Because Reid’s conduct identified in the final order occurred during 2022 and 2023, Regulation Best Interest—not Rule 2111—was the primary recommendation standard applicable to his conduct.
FINRA’s final order included Rule 2111 findings because the proceeding also addressed pre-June 30, 2020 conduct involving Reid & Rudiger and Edward Rudiger Jr.
FINRA Rule 2010: Standards of Commercial Honor
FINRA Rule 2010 requires FINRA members and associated persons to observe high standards of commercial honor and just and equitable principles of trade.
FINRA found that Reid, Rudiger, and the firm violated Rule 2010 in connection with the churning, excessive trading, and Regulation Best Interest violations.
FINRA Rule 3110: Supervision
FINRA Rule 3110 requires FINRA member firms to establish and maintain supervisory systems and written procedures reasonably designed to achieve compliance with securities laws and FINRA rules.
FINRA found that Reid & Rudiger’s procedures did not adequately explain:
- How to calculate turnover rates or cost-to-equity ratios;
- What levels could indicate excessive trading;
- When supervisors should investigate trading-cost warning signs; or
- How potential churning should be addressed.
FINRA also found that the firm did not use available exception reports or meaningfully consider turnover rates and cost-to-equity ratios when supervising Reid’s and Rudiger’s trading.
The Rule 3110 findings were entered against Reid & Rudiger, Rudiger, and responsible supervisors. They should not be characterized as a separate personal supervisory finding against Clifford Reid.
Contact an Attorney About Clifford Reid Investment Losses
For more than 45 years, Robert Wayne Pearce has represented investors seeking to recover losses caused by churning, excessive commissions, unsuitable recommendations, broker fraud, negligence, and brokerage-firm supervisory failures.
The Law Offices of Robert Wayne Pearce, P.A. represents investors nationwide, including clients seeking assistance from a New York investment fraud lawyer.
The firm generally handles qualifying investor-loss matters on a contingency-fee basis. Clients ordinarily do not pay an attorney’s fee unless compensation is recovered.
Call (866) 971-5340 or email pearce@rwpearce.com for a free and confidential consultation.
