Mutual Securities Broker Gary Pevey Supposedly Breached His Fiduciary Duty To Investors
Soreide Law Group provides this investor alert in regard to Mutual Securities financial advisor or securities broker Gary Pevey (CRD#: 2129469, Sacramento, California). Notably, FINRA BrokerCheck shows that three investors complained about Pevey. These investors suggest that Pevey, who worked for Mutual Securities from 2011 to 2018, breached his fiduciary duty and he sold unsuitable investments. In addition, we can see that FINRA severely sanctioned Pevey in 2019 for private securities transactions. Here’s more on the problem broker.
Mutual Securities Client Indicates Gary Pevey Was Negligent, Violated Securities Laws
Evidently, a client of Mutual Securities contested Gary Pevey in a May 2020 FINRA Arbitration Action. First of all, the client purchased a real estate security in 2016 that Pevey misrepresented. It seems that Pevey did not provide accurate or truthful information regarding these investments. Secondly, he supposedly provided unsuitable investment recommendations. It is possible that Pevey overlooked the client’s risk tolerance, goals, or other suitability information.
Thirdly, Gary Pevey apparently breached a contract in connection with the client’s real estate security transactions. Moreover, the client contends that Pevey breached a fiduciary duty, placing his interests ahead of the client’s interests. Finally, the lawsuit makes allegations of negligence and violations of securities laws. Because of this, the client demanded compensatory relief of no less than $100,000. Evidently, this matter is ongoing.
Pevey Apparently Sells High-Risk Investments
Notably, a second Mutual Securities client took aim at Gary Pevey with an April 2019 Complaint. The client indicated that Pevey or Mutual Securities sold bad high-risk investments. In addition, the client claimed that Mutual Securities failed to supervise Pevey. For losses on promissory notes, the client demands $134,009.35 in compensation.
FINRA Issues 12-Month Suspension, $10,000 Fine To Gary Pevey For Woodbridge Sales
Evidently, FINRA prohibited Gary Pevey from being a securities broker from 2019 until January 2020. FINRA says that Pevey did not comply with his employer’s procedures and FINRA private securities transactions rules in connection with $1.1 million in securities transactions that netted more than $40,000 in commissions for Pevey.
It appears that without first notifying Mutual Securities and getting its approval, Gary Pevey sold promissory notes relating to Woodbridge Group of Companies LLC. Some of the investors who purchased promissory notes had investment accounts at Mutual Securities.
Notably, Woodbridge has since filed for bankruptcy, and its founder has been accused of running a Ponzi scheme. It is unclear whether investors sustained complete losses on their investments. Apparently, Mutual Securities disaffiliated with the securities broker for private securities transactions.
Mutual Securities Compensates Client Who Complained About Gary Pevey
FINRA BrokerCheck shows a September 2018 lawsuit brought by a Mutual Securities client. Similar to the other clients, this client signaled that Gary Pevey sold shoddy products. It seems that Pevey did not have the proper supervision at the time of these sales. For losses sustained on a promissory note, Mutual Securities paid the client $134,893.85. Notably, Pevey personally contributed $120,000 towards the May 2019 settlement of this dispute.
Losses By Investing Through Pevey?
Have you experienced losses by investing with broker Gary Pevey? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have incurred losses due to misconduct of securities firms and brokers like Gary Pevey.