Garrett Randell Gaylor, a previously registered broker based in New York, was the subject of a regulatory action leading to his indefinite bar on the allegations of unsuitable investment recommendations capacities by the United States Securities and Exchange Commission (SEC) according to an investigation by securities lawyer, Alan Rosca.
Securities lawyer Alan Rosca, of Rosca Scarlato LLC law firm is investigating conduct related to the indefinite bar of former broker Garrett Gaylor by SEC on the allegation of unsuitable investment recommendations.
Prior to the bar, Garrett Gaylor was registered with Joseph Stone Capital, a Financial Industry Regulatory Authority (FINRA) member firm. He was registered with the firm from September 2015 till April 2020 and he was in the employment of the firm when he carried out the acts leading to the bar.
Concerned about investments with
Garrett Gaylor Was Barred by SEC for Unsuitable Investment Recommendations
Publicly available information reviewed by securities lawyer Alan Rosca indicates that ex broker Garrett Gaylor was barred by the regulatory authority on the allegations that he made highly unsuitable investment recommendations which led to losses for the investors, in addition to a pending customer dispute as reported on his FINRA brokercheck page.
According to the brokercheck reports, he was allegedly barred indefinitely from acting as a broker, dealer, investment adviser, and municipal securities dealer among others. He was also allegedly barred from participating in the any offering of a penny stock. He was allegedly barred indefinitely starting from August 13, 2020 in addition to the payment of $264,694 in disgorgements and $10,053 in monetary penalty other than fines.
In ordering these sanctions against Gaylor, SEC alleged that former broker Garrett Gaylor violated antifraud provisions of the federal securities law by recommending a high-cost pattern of frequent trading that he had no reasonable basis to believe would be suitable for any of his customers, and that he also made material misrepresentations and omissions to the customers.
The SEC also alleged that Garrett Randell Gaylor engaged in unauthorized trading.
The Order containing these sanctions further alleged that Gaylor carried out these activities in respect of 12 customers, whom he charged commissions on a trade-by-trade basis in addition to a fixed $75 postage fee. It was alleged that former broker Garrett Gaylor had an average holding period of 14.9 days on the investments which were alleged to be significantly low to ensure that the investors made a minimal profit.
It was further alleged that the twelve customers made losses on their accounts of amounts approximately $741,230 with a turnover rate of 42.8 which is allegedly way above the benchmark for excessive trading. According to the order, Garrett Gaylor allegedly misrepresented and failed to the twelve investors the high cost associated with his frequent trading pattern as well as the extreme likelihood of losses associated with it.
From these transactions, Garrett Randell Gaylor allegedly earned about $264,694 in commissions which he has allegedly been asked to repay as disgorgements among other sanctions imposed, as reported in the order. Based on these allegations, the SEC alleged that Gaylor violated Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5.
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Garrett Gaylor Has a Pending Customer Dispute
According to the investigation by the securities lawyer Alan Rosca, former broker Garrett Gaylor has a pending customer dispute initiated against him on the allegations of breach of fiduciary duty, negligence, failure to supervise and vicarious liability. The dispute was instituted in December 2019 and the client is requesting $235,635 in damages.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
Securities Lawyers Investigating Potential Options For Gaylor Investors
The securities lawyers of the Rosca Scarlato LLC law firm advise and represent investors who are victims of broker or investment-related fraud and other misconducts and are currently investigating conduct allegedly involving Garrett Gaylor which led to his bar by the SEC on the allegations of unsuitable investment recommendations and his pending customer dispute.
The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related Garrett Gaylor’s bar by SEC on the allegations of unsuitable investment recommendations and his pending customer dispute, may contact attorney Alan Rosca for a free, no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.