The Investor’s Watchdog

The Investor's Watchdog

Former Garden State Securities Broker Barred by FINRA for Borrowing $15,000 from Firm Customer and Attempting to Avert FINRA Investigation

Tuesday, September 15, 2020

On September 1, 2020, the Financial Industry Regulatory Authority (FINRA) Office of Hearing Officers accepted an Offer of Settlement from Ronald Richer, a former broker associated with Garden State Securities (GSS) in New York City from December 2014 to May 2020.

According to his FINRA BrokerCheck report, Richer was discharged for “[t]aking a loan from a customer without prior firm approval” and “apparent alteration of bank records prior to submission to the firm and FINRA.” Shortly after GSS documented his departure in a Form U5, FINRA Department of Enforcement began investigating these allegations.

The Order Accepting the Offer of Settlement finds that in September 2016, Richer borrowed $15,000 from a senior customer without seeking or obtaining prior written approval from GSS. Richer concealed the loan from GSS by falsely stating that he had not borrowed money from a customer on four annual compliance questionnaires.

Then, Richer attempted to avert FINRA staff during its investigation by altering eight check images to disguise the fact that the checks were made payable to the senior customer. During an on-the-record interview with FINRA staff, Richer denied altering these bank statements or any records that he produced to FINRA and denied accepting money from the senior customer. When FINRA staff confronted him with evidence of these violations, Richer admitted to altering the check images and accepting this loan.

Based on the foregoing, Ronald Richer violated FINRA Rules 3240, 8210 and 2010. FINRA Office of Hearing Officers ordered that Richer be barred from association with any FINRA member firm in any capacity.

Did you lose money because of broker misconduct? If so, call us (1-877-410-8172) today for a free, no obligation consultation.

 

Author: Jason T. Albin

Jason Albin is an Attorney and Partner at ChapmanAlbin, the investor rights law firm. He has represented hundreds of investors who have lost money due to broker misconduct, unsuitable investment advice and fraud.​ Jason also represents individuals in “whistleblower” suits filed against unscrupulous companies that try to defraud the US federal and state governments.

Leave a Reply

Your email address will not be published. Required fields are marked *