Another Broker Consents to FINRA Sanctions for Involvement in Woodbridge Group of Companies’ SchemeTuesday, January 15, 2019
The Financial Industry Regulatory Authority (FINRA) Department of Enforcement recently approved a Letter of Acceptance, Waiver and Consent (AWC) against general securities representative Gary Pevey for violating FINRA Rules by engaging in private securities transactions without obtaining approval from his member firm.
According to his FINRA BrokerCheck report, Pevey was associated with Mutual Securities, Inc. in Sacramento, California from March 2011 to February 2018. He was discharged from the firm after allegations arose that he violated FINRA Rule 3280 by engaging in private securities transactions. Shortly after the firm filed his Form U4, FINRA Department of Enforcement began investigating these allegations.
According to the AWC, Pevey solicited investors to purchase promissory notes in the purported real-estate investment fund by the Woodbridge Group of Companies LLC (Woodbridge), a scheme that has been subject to several FINRA investigations in the past few months. In this case, Pevey allegedly sold $1.11 million Woodbridge promissory notes to five Mutual Securities investors and 10 additional individuals unrelated to the firm. Pevey allegedly received over $40,000 in commissions for these transactions.
By engaging in private securities transactions without approval, Pevey violated Mutual Securities’ written supervisory procedures that stated he must obtain approval from the firm prior to engaging in any outside activity. Based on the foregoing, Pevey violated FINRA Rules 3280 and 2010.
Without admitting or denying the allegations made against him by FINRA, Gary Pevey consented to a 12-month suspension from associating with any FINRA member firm in any capacity, a $10,000 fine, and disgorgement of commissions he received for selling the Woodbridge securities.
Many times, brokerage firms can be held liable if they failed to supervise a broker who committed misconduct while registered at their firm. If you lost money due to Gary Pevey’s alleged involvement in the Woodbridge Group of Companies LLC, you may be able to recover from him or his associated brokerage firm, Mutual Securities, Inc. Call us (1-877-410-8172) for a free, no obligation consultation. Since 1998, we have been fighting for victims of broker misconduct and investment fraud.