MICHAEL LAWRENCE COYNE Investment Fraud Investigation: SPAC Securities Misconduct

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Investment Fraud Alert: Michael Lawrence Coyne’s SPAC Securities Misconduct

If you’ve invested through broker Michael Lawrence Coyne (CRD# 6456093), currently employed at Benjamin Securities, Inc., you may have been affected by concerning regulatory actions recently taken against him. In February 2025, both NYSE American LLC and the New York Stock Exchange sanctioned Coyne for serious misconduct related to Special Purpose Acquisition Company (SPAC) securities transactions.

Regulatory Actions Reveal Troubling Investment Practices

According to FINRA BrokerCheck records, Michael Lawrence Coyne has been hit with significant penalties for failing to reasonably consider conflicts of interest when purchasing SPAC securities for brokerage customers. The regulatory findings reveal a pattern of prioritizing his firm’s contractual obligations to SPAC clients over the best interests of individual investors.

The regulatory actions resulted in:

• A censure
• A $200,000 total fine ($100,000 for each NYSE regulatory action)
• A six-month suspension from association with any NYSE American member or NYSE member organization

These penalties highlight the seriousness of the allegations against Coyne and raise critical concerns for investors who may have worked with him.

How Michael Coyne’s SPAC Misconduct Potentially Harmed Investors

The regulatory findings detail several troubling patterns in Coyne’s handling of SPAC securities that may have damaged investor interests:

Conflicts of Interest and Failure to Put Customers First

Coyne failed to reasonably consider significant conflicts of interest between brokerage customers and his firm when purchasing SPAC securities. His firm had contractual obligations to help SPAC issuers meet exchange listing requirements, which require companies to have a minimum number of shareholders to be listed on exchanges.

Rather than prioritizing investor interests, Coyne:

1. Often purchased the precise number of shares required to meet exchange listing requirements without considering if these investments were suitable for each customer
2. Failed to properly solicit customers for these SPAC transactions before executing trades
3. Marked trades as “solicited” when some were actually unsolicited
4. In at least one case, failed to adequately inform customers about SPAC securities purchases and sales in their accounts

Capital Deposits and Compensation Concerns

The investigation revealed that Coyne requested his firm periodically add capital to certain brokerage accounts as part of a SPAC incentive program. These funds were often used to purchase SPAC securities to satisfy exchange listing requirements. Most troublingly, Coyne’s compensation was influenced by the success of this SPAC program, creating a clear conflict of interest.

Misleading Exchange Certifications

In perhaps the most concerning finding, Coyne provided inaccurate certifications to exchanges, including NYSE and NYSE American. These certifications claimed SPAC clients had met exchange listing requirements by having sufficient unique shareholders, but failed to disclose:

1. Coyne frequently planned to (and did) sell the SPAC shares shortly after certifications were made
2. In certain instances, some brokerage customer accounts had the same beneficial owner, undermining the requirement for truly diverse shareholder bases

Understanding SPAC Securities and Potential Investor Harm

For investors unfamiliar with SPACs, these “blank check companies” are formed solely to raise capital through an IPO for the purpose of acquiring an existing company. When brokers like Coyne manipulate the SPAC shareholder base to meet exchange requirements without proper disclosure or consideration of investor suitability:

1. Investors may end up holding unsuitable investments that don’t align with their financial goals
2. The artificial inflation of shareholder numbers may mask issues with the SPAC’s market viability
3. Investors might be unaware that their broker intends to quickly sell these positions after regulatory hurdles are cleared

Broker Background: Michael Lawrence Coyne’s Registration History

Michael Coyne has been in the securities industry since December 2015 and is currently registered with Benjamin Securities, Inc. (CRD# 7754) in Miami, FL. His previous employers include:

• Ingalls & Snyder LLC (CRD# 2288) from February 2018 to February 2023
• CAIS Capital LLC (CRD# 154512) from December 2015 to February 2018

Coyne holds various securities licenses including:

• General Securities Principal (Series 24)
• General Securities Representative (Series 7)
• Investment Banking Representative (Series 79)
• Uniform Securities Agent State Law (Series 63)

He is currently registered in 27 U.S. states and territories.

Warning Signs of Investment Fraud for SPAC Securities

If you’ve worked with Michael Coyne or similar brokers, be alert to these red flags that might indicate SPAC-related misconduct:

1. Account activity you didn’t approve: Purchases of SPAC securities without your explicit knowledge or authorization
2. Uniform position sizes: SPAC positions that are identical across multiple investors (often in round lots like exactly 100 shares)
3. Quick sales after IPOs: Your broker selling your SPAC positions shortly after the company completes its exchange listing
4. Vague explanations: Inability to clearly explain why a particular SPAC investment is suitable for your specific financial situation
5. Incentive offers: Capital additions to your account specifically tied to SPAC purchases

Recovering Losses from SPAC Securities Misconduct

If you believe you may have been affected by Michael Lawrence Coyne’s misconduct or similar SPAC-related fraud, several recovery options may be available:

FINRA Arbitration

For most investors, FINRA arbitration represents the most direct path to recovery. This process:

• Is typically faster than court litigation
• Allows claims based on suitability issues, conflicts of interest, and failure to disclose material facts
• Can result in recovery of investment losses, interest, and potentially punitive damages in cases of serious misconduct

Securities Class Actions

In cases where numerous investors suffered similar harm from the same SPAC-related misconduct, class action lawsuits may consolidate claims. These can be effective when:

• Many investors experienced identical misconduct
• Individual loss amounts might not justify separate legal actions
• The pattern of behavior affected a large group of customers similarly

Direct Negotiation

Before pursuing formal legal action, experienced securities attorneys can sometimes negotiate directly with brokerage firms to secure recovery without lengthy proceedings, particularly when regulatory findings have already established misconduct.

Legal Time Limits for Investment Fraud Claims

If you believe you’ve been harmed by Michael Coyne’s SPAC-related misconduct, be aware that strict time limitations apply:

• FINRA arbitration claims typically must be filed within 6 years of the event
• State securities laws often have shorter statutes of limitation (1-3 years in many states)
• The clock often starts running from the date the investor discovered or should have discovered the misconduct

Given the February 2025 regulatory actions against Coyne, investors should act promptly to preserve their recovery rights.

How Our Investment Fraud Attorneys Can Help

Our experienced securities attorneys specialize in cases involving broker misconduct, including the exact type of SPAC-related fraud identified in Michael Lawrence Coyne’s case. We can:

1. Conduct a comprehensive review of your investment accounts to identify potential SPAC-related misconduct
2. Analyze trading patterns to determine if your accounts were used to fulfill exchange listing requirements
3. Calculate your potential damages from unsuitable SPAC investments
4. Represent you in FINRA arbitration proceedings against responsible parties
5. Negotiate directly with brokerage firms for potential settlements

With experienced representation, investors who suffered losses due to SPAC-related misconduct can pursue recovery while helping to hold accountable those who place their own interests above their clients.

Benjamin Securities’ Responsibility for Supervision

Brokerage firms like Benjamin Securities (Coyne’s current employer) and Ingalls & Snyder (where the misconduct occurred) have a legal duty to reasonably supervise their brokers. Their potential failure to detect and prevent this SPAC-related misconduct could establish firm liability separate from Coyne’s individual actions.

Key supervisory failures might include:

• Inadequate monitoring of SPAC securities transactions
• Failure to identify suspicious patterns in customer account openings or trading
• Insufficient procedures to identify and address conflicts of interest
• Permitting compensation arrangements that incentivized problematic behavior

These supervisory issues may provide additional recovery avenues for affected investors.

Red Flags in Michael Coyne’s Regulatory History

The February 2025 actions weren’t isolated incidents. According to FINRA BrokerCheck, Coyne has two disclosed regulatory events. These regulatory sanctions highlight a potential pattern of prioritizing firm and personal interests over customer welfare.

Investors should consider whether this regulatory history indicates broader concerns about how Coyne approaches client relationships and investment decision-making.

Protect Yourself from SPAC Investment Fraud

To avoid falling victim to similar misconduct in the future, consider these protective steps:

1. Research your broker: Use FINRA BrokerCheck to review your broker’s regulatory history before investing
2. Question SPAC recommendations: Ask detailed questions about why a specific SPAC is suitable for your investment objectives
3. Review account statements carefully: Monitor for unauthorized transactions or suspicious patterns in SPAC securities
4. Understand compensation arrangements: Ask how your broker is compensated for SPAC recommendations
5. Maintain written records: Document all communication with your broker about investment recommendations and decisions

Conclusion: Seek Professional Guidance for SPAC-Related Investment Losses

Michael Lawrence Coyne’s case highlights significant concerns about SPAC-related investment practices that potentially harmed numerous investors. If you worked with Coyne or invested in SPAC securities through Benjamin Securities or Ingalls & Snyder, you may be entitled to recovery.

Our experienced investment fraud attorneys have successfully represented investors in complex securities cases involving conflicts of interest, unsuitable recommendations, and regulatory violations. We understand the intricacies of SPAC securities and how brokers can manipulate these investments to the detriment of their clients.

Don’t delay in seeking a professional evaluation of your potential claims. The regulatory findings against Coyne provide powerful evidence that may support investor recovery actions.

Call 800-950-6553 or complete our online form to schedule your no-obligation case evaluation.

Chetan Patil

Chetan Patil is the founder and Managing Partner of the Patil Law. He brings over 15 years of extensive experience in diverse complex disputes and transactions, across the country. Mr. Patil specializes in litigations, trials, arbitrations, and appeals of complex securities, FINRA, financial and business disputes, with an emphasis in securities, financial services, and financial regulatory law.