Last Updated: March 2026 (New York, NY)
Clifford R. Reid Investigation Summary
Here’s what you need to know about New York, NY, stockbroker Clifford R. Reid:
- Name: Clifford Ronald Reid
- Current Employer: Reid & Rudiger LLC
- CRD Number: 1905920
- Function: Stockbroker / Financial Advisor
- Primary Location: New York, NY
- Aliases: Clifford Reid
- Can Clifford Reid be sued in FINRA arbitration? Yes
- Sanctioned by FINRA: Currently pending investigation
- Highest Settlement or Award: $120,000
- Two Pending Customer Disputes Seek Damages of: Damage amounts unspecified at this time–allegations of excessive trading and excessive commissions
If you’ve sustained damages from Mr. Reid, discuss your case with experienced investment fraud lawyer Bob Rex at (877) 224-3199 for a free consultation.
Did You Lose Money With Clifford Reid As Your Stockbroker? FINRA alleges Churning / Excessive Trading
FINRA alleges Reid and Edward Rudiger maximized their own financial benefit at the expense of their customers. A pending FINRA investigation initiated on 3/3/2026, is examining allegations of unsuitability and excessive trading by Clifford Reid, potentially violating FINRA Rules 2111 (Suitability) and 2010 (Standards of Commercial Honor and Principles of Trade). FINRA alleges that Reid and Edward Rudiger willfully violated Section 10(b) of the Exchange Act and Exchange Act Rule 10b-5 by churning customer accounts. The complaint alleges that Reid and Rudiger recommended a high-volume, high-cost market-timing strategy involving large equity positions in stocks, often using margin, and then selling them in a short period of time to fund purchases of other unsuitable stocks. According to FINRA Rudiger and Reid generated costs of about $500,000 (mostly commissions) while causing realized losses to their customers of $1.1 million. FINRA v Reid & Rudiger LLC, Edward Rudiger, Jr. , Clifford R. Reid, Kelli A. Mezzatesta, and Marc Harrison, Disciplinary Proceeding 2019060647601
What is Excessive Trading (Churning)?
Churning According to U.S. Securities and Exchange Commission (SEC)
Other Investigations Involving Churning
Mr. Reid has previously faced several customer complaints, including:
- A 2023 pending complaint alleging unsuitable recommendations, excessive trading, and failure to supervise. No damage amount is specified at this time.
- A $120,000 settlement in 2019, resolving a claim of failure to execute a stop-loss order, among other allegations.
- Prior disputes settled for $21,000 (2019) and $7,500 (1999) related to allegations of unsuitability and breach of fiduciary duty.
Allegations of Broker Misconduct Against Clifford Reid
Customers of Clifford Reid have alleged the following misconduct in connection with the handling of their accounts:
- Excessive Trading and Unsuitable Investment Recommendations:
A pending FINRA investigation alleges Mr. Reid engaged in excessive trading, violating FINRA Rule 2111. This could indicate a pattern of prioritizing commissions over client interests. - Failure to Supervise and Breach of Fiduciary Duty:
Claims from past disputes include allegations that Mr. Reid failed to adequately supervise accounts and acted against his fiduciary duty, leading to client losses. - Failure to Execute Stop-Loss Orders:
A settled 2019 dispute alleged Mr. Reid failed to execute a stop-loss order, resulting in a settlement of $120,000.
FINRA Rule 2010-states that a member: “in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade.”
Firms Have a Duty to Supervise their Financial Advisors (FINRA Rules 3110 & 2090)
Brokers and their firms have a duty to comply with the FINRA suitability rule which requires that they have a reasonable basis to believe that a recommendation is suitable for the customer.
FINRA Rule 2111- suitability -Regulation Best Interest
Who is Reid & Rudiger LLC ?
According to their website, Reid & Rudiger is “a research-generated botique broker buiding lasting and meaningful relationships with our clients since 1999.” Their offices are located at 40 Wall Street, New York, NY. Cliford Reid is a co-founder with 29 years experience and ‘is instrumental in client development for the firm’ according to their website. Edward J. Rudiger, Jr. is also a co-founder with 28 in the business and has served as company CCO and CEO. Marc Harrison, also a co-founder, is the Chief Investment Strategist.
Recover Your Investment Losses Now With Rex Securities Law
If you have suffered investment losses in an account handled by Clifford R. Reid, contact us for a complimentary consultation with an experienced securities lawyer to learn how you may be able to recover damages through FINRA arbitration.
Firms We Have Pursued On Behalf of Our Clients
With offices in Boca Raton, FL, and Austin, TX, stockbroker fraud attorney Bob Rex provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers, financial advisors, and broker-dealers.
If you have questions about how your account has been handled, call (877) 224-3199 to speak with an experienced securities attorney at no cost to you.
Most cases are handled on a contingent fee basis, meaning that you do not pay legal fees unless we are successful.