Arkadios Capital, a mid-sized broker-dealer based in Georgia with approximately 350 financial advisors, has been ordered by a FINRA arbitration panel to pay $2.7 million in damages to Candyce Myers, an investor who was never a client of the firm but was defrauded in a Ponzi scheme. The award, issued yesterday, stems from claims that Arkadios failed to supervise former advisor Michael Lickiss, whose father, Edwin Lickiss, operated the fraudulent investment scheme from shared office space in Danville, California.
Michael Lickiss was registered with Arkadios from late 2021 through mid-2024, according to his BrokerCheck profile. During that time, his father, Edwin Lickiss—a 78-year-old former securities industry veteran with 36 years of experience—ran a Ponzi scheme that federal prosecutors say defrauded more than 93 investors of at least $9.5 million. Edwin Lickiss pleaded guilty in May to one count of wire fraud and one count of money laundering in U.S. District Court in Oakland, according to a Department of Justice statement.
The arbitration award does not mention the Ponzi scheme directly. Instead, Myers alleged breach of fiduciary duty, negligence, failure to supervise, and selling away against Arkadios. Scott Silver, an attorney familiar with the case, noted that the father used a Medallion Guarantee stamp on client account statements and shared office space with his son. “Arkadios brought the advisor, the son, on board and did not do reasonable supervision,” Silver said. “It’s very old school.”
Arkadios’s chief legal and corporate strategy officer, Spence Pryor, said the firm is “shocked by and vehemently disagrees with the award” and plans to file a motion to vacate in federal court. Pryor emphasized that Myers was never a client of Arkadios and that Edwin Lickiss was never employed by or associated with the firm. He acknowledged that the father had an office in the son’s workplace but said the firm was unaware of it. Pryor also claimed that Edwin Lickiss stole the Medallion stamp without the firm’s or his son’s knowledge and used it only sparingly.
According to the Department of Justice, Edwin Lickiss admitted to running the Ponzi scheme from 1998 through September 2024. He lured investors by promising exclusive, safe, tax-free bonds with returns exceeding 20%, and issued fraudulent promissory notes on letterhead from his former firm, Foundation Financial Group. In reality, he used new investor funds to pay earlier investors, a classic Ponzi structure.
Michael Lickiss is now registered with Pacific Wealth Advisory Services, an RIA. He did not return calls for comment. His BrokerCheck profile shows seven pending investor complaints. The case highlights ongoing supervisory challenges for broker-dealers, especially when advisors share office space with unregistered individuals. For more on regulatory shifts, see our coverage of the SEC Semi-Annual Filing Proposal Shifts Due-Diligence Burden to RIAs, Says Former FINRA Attorney.
This arbitration award follows other recent FINRA decisions, including a $1.2 million award against UBS over variable annuity and margin loan claims. The case also echoes the Merrill Lynch settlement with ex-Dolphins player Sean Smith, where a former broker’s misconduct led to firm liability.
Arkadios’s motion to vacate will likely argue that the panel exceeded its authority or that the evidence did not support the findings. Pryor stated, “The evidence did not support the panel’s decision.” However, the award underscores the potential liability for firms when advisors’ family members engage in fraud, even if the firm claims ignorance.
