Anthony Grey of Winter Park, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly charging excessive mark-ups to his clients and engaging in other fraudulent activity. Mr. Grey entered the securities industry in the early 1980s and later became associated with Gardnyr Michael Capital, Inc. (GMCI) in 1994.
During a routine FINRA member conduct examination in 2009, a FINRA examiner discovered a pattern of trades that revealed Mr. Grey artificially inflated prices of bonds for his retail customers. FINRA found that on ten occasions, Mr. Grey charged his customers unfair mark-ups ranging from 5.36% to 19.12%. In seven of the occasions FINRA further alleged that Mr. Grey charged fraudulently excessive mark-ups that he failed to disclose.
The 2009 FINRA examiner found that Mr. Grey had routed trades through two of his personal accounts. By buying bonds through GMCI and then selling them to his personal account at a higher price, Mr. Grey increased the price of the bonds he sold to his customers. Additionally Mr. Grey allegedly misrepresented the actual mark-up percent by indicating it was consistent to the average 3% offered by GMCI when in fact it was much higher.
FINRA found that these undisclosed mark-ups were a violation of MSRB Rule G-17 and G-30. Without admitting or denying the findings, Mr. Grey agreed to the FINRA sanctions and was ordered to pay a $30,000 fine. Additionally, Mr. Grey was suspended from association with any FINRA member for 18 months and ordered to disgorge $15,750.
Stockbrokers have been known to engage in many types of practices which violate industry and firm rules, practices, and procedures. In order to protect customers from stockbroker misconduct, FINRA rules require broker-dealers such as Gardnyr Michael Capital to establish and implement a reasonable supervisory system. The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the firm, such as Gardnyr Michael Capital own policies and procedures. If broker dealers and/or their supervisors do not establish and implement these protective measures, they may be liable to investors for damages which flow from the misconduct. As a result, investors who have suffered losses because of their stockbroker’s unlawful or prohibited conduct can file a claim to recover damages against broker dealers like Gardnyr Michael Capital, which should consistently oversee its employees in order to prevent stockbroker misconduct.
Have you suffered losses in your Gardnyr Michael Capital investment account due to your stockbroker’s misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against stockbrokers for unsuitable recommendations, misrepresentations, and/or other unauthorized and prohibited conduct.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities, and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please post a comment, call (800) 732-2889, send Mr. Pearce an email at firstname.lastname@example.org, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.