FINRA Suspends Garden State Broker In Investigation
Garland Sean James (also known as Gary James) of New York New York a stockbroker formerly employed by Garden State Securities Inc. has been suspended by Financial Industry Regulatory Authority (FINRA) in all capacities on December 7, 2018 founded on allegations that James failed to comply with the terms of FINRA Arbitration in which James was ordered to pay a customer $25,000.00 in compensatory damages.
FINRA Public Disclosure reveals that James was found liable on the customer’s claims of unauthorized margin use; unauthorized trading; misrepresentation of investment-related information; breach of contract; unsuitability; and fraud in reference to the customer’s Theravance Inc. investments. FINRA Arbitration No. 18-00763 (Aug. 16, 2018).
This is not the first time that James has been subject of a FINRA regulatory action concerning his violative conduct in the securities industry. In particular, James was barred by FINRA in all capacities supported by accusations that he failed to cooperate with a FINRA inquiry. Case No. 2015047471301 (Sept. 13, 2016).
FINRA Public Disclosure confirms that James has been identified in two customer initiated investment related disputes containing allegations of his misconduct while employed with Garden State Securities Inc. Specifically, on June 22, 2015, a customer initiated investment related complaint concerning James’ activities was settled to resolve accusations that James executed inappropriate margin-based equity transactions, causing the customer to incur unwarranted investment losses. On February 29, 2016, another customer initiated investment related complaint regarding James’ conduct was resolved for $30,000.00 in damages based upon allegations that the customer was placed in equity investments that were neither suitable nor authorized.
Subsequently, on February 23, 2016, a customer initiated investment related complaint regarding James’ activities was settled to resolve accusations that over-the-counter equity trades were placed in the customer’s account without the customer’s permission. Further, a customer filed an investment related arbitration claim regarding James’ conduct where the customer requested $50,775.00 in damages supported by allegations that the customer was placed in unsuitable investments including options, stock and over-the-counter equities; and the customer’s investment portfolio had been churned. FINRA Arbitration No. 17-00537 (Mar. 10, 2017). Thereafter, on June 12, 2017, a customer initiated investment related complaint involving James’ activities was resolved for $72,000.00 in damages founded on accusations that the customer’s investment instructions had been disregarded, and the customer was given bad advice concerning the equities held in the customer’s investment portfolio.
James has been discharged by Garden State Securities Inc. as of November 2, 2015 supported by allegations that he solicited investments despite lacking registration in the state where the solicitation took place.