Robert Allen Gravette (also known as Bob Gravette, Bobbie Gravette, and Bobby Gravette) and Mark Andrew MacArthur, both based in Santa Clarita, California, are named defendants in a pending civil action instituted against them by the Securities and Exchange Commission (“SEC”) on the allegations of the breach of their fiduciary duties to their clients and conflict of interests, according to an investigation by lawyer Alan Rosca.
Investor lawyer Alan Rosca, of the Rosca Scarlato LLC law firm, is investigating conduct related to the pending civil action against the two California brokers, Robert Gravette and Mark MacArthur. Investors concerned about potential losses as a result of allegations brought by the SEC are encouraged to contact an experienced investor lawyer to discuss their options. Investors may contact attorney Rosca toll free at 888-998-0530, via email at arosca@rscounsel.law, or by using a contact form on this page.
Until recently, Robert Gravette and Mark MacArthur were both registered Ausdal Financial Partners in Santa Clarita, California. While MacArthur is still registered with Ausdal, Gravette concluded his registration in November 2020.
In addition, between January 2008 and December 2020, Robert Gravette was a registered investment adviser with Criterion Wealth Management. Mark MacArthur was also an investment adviser with Criterion Wealth Management between January 2008 and August 2017, when he joined M2 Capital Advisors in Valencia, California.
Ausdal Financial Partners, Inc is a Financial Industry Regulatory Authority (FINRA) member firm. Criterion Walth Management is no longer an active registered investment adviser frim. Robert Gravette and Mark MacArthur were in the employment of these firms when they allegedly carried out the conducts related to the SEC civil action.
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SEC files Lawsuit Against Gravette and MacArthur
The Rosca Scarlato lawyers for investors learned in their investigation of publicly available records that brokers are facing a pending civil action instituted against them by the SEC as reported on Gravette’s and MacArthur’s FINRA brokercheck pages.
The civil action was instituted against them before the U.S. District Court of the Central District of California according to the complaint. The complaints also names Criterion Wealth Management Insurance Services, Inc (Criterion) a firm co-owned by the two brokers, as co-defendants in the action.
The SEC alleged that Robert Gravette and Mark MacArthur alongside their firm, Criterion, have breached the fiduciary duty they owed to their clients by intentionally and glaringly failing to disclose their conflict of interest as it relates to some private placement funds they recommended to their clients.
According to the Complaint, between the period of spring 2014 and summer 2017, the defendants recommended that their advisory clients invest more than $16 million in four private placement funds, without disclosing that the fund managers had paid them the sum of money in excess of $1 million in side compensation of the recommendations.
Despite this side compensation, the defendants still charged their clients their commissions and other charges on this investment.
The defendants allegedly failed to disclose this vital financial conflict of interest because the side compensation was allegedly recurring and it depended on the ability of the defendants and Criterion to keep their clients invested in the funds. This allegedly motivated them to recommend these investments to their clients and to also recommend that they keep their investments in the funds.
To facilitate the process, the defendants failed to disclose some material facts to their clients, thus defrauding the clients and breaching their fiduciary duty, the complaint states. The complaints further alleged that Criterion’s Form ADV was also materially misleading and non-compliant.
The SEC, in seeking a permanent injunction against the defendants prohibiting future violations of the laws and also an order requiring the defendants to disgorge their gains argues that Criterion violated Sections 206(1), 206(2), 206(4), and 207 of the Advisers Act, and that Robert Gravette and Mark MacArthur also violated the same provisions in addition to aiding and abetting Criterion’s violations. The SEC also seeks to ensure that other civil penalties are imposed against Criterion and the other defendants.
Robert Allen Gravette Was Subject to Customer Dispute
Disclosures on Gravette‘s brokercheck reveal that in October 2018 a customer filed a dispute alleging that while he was registered with Ausdal Financial, former broker Robert Gravette recommended private placements involving oil and gas and direct investments that resulted in $100,000 alleged damages. This dispute was settled for $42,500, out of which $40,375 represented Gravette‘s individual contribution, FINRA reports.
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.
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Securities Lawyer Investigating
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conducts related to Robert Allen Gravette and Mark Andrew MacArthur’s pending civil action on the allegation of the breach of their fiduciary duties to their clients and conflict of interests.
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 Robert Allen Gravette and Mark Andrew MacArthur’s pending civil action on the allegation of the breach of their fiduciary duties to their clients and conflict of interests, 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.