The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Gary Basralian. According to his publicly available FINRA BrokerCheck report, Gary Basralian has been the subject of multiple customer disputes.
Gary Basralian was a New Jersey based securities broker. He worked in the securities industry for forty-three years. During his career, he was registered with seven different securities firms. He is no longer working as a registered securities broker in any fashion.
- First Investors Corporation (1974-1977)
- American General Capital Planning (1977-1980)
- KCF Insurance Agency (1980-1981)
- Cornerstone Financial Services (1980-1983)
- WZW Financial Services (1983-1984)
- Integrated Resources Equity Corporation (1984-1989)
- Royal Alliance Associates (1989-2017)
- In December 2017, a customer alleged that Gary Basralian violated the RICO act, engaged in common law fraud, breached contract, converted funds, and violated the New Hampshire Securities Act. This case went to arbitration where the customer was awarded $4,518,488 in damages.
- Also in December 2017, another customer alleged that Gary Basralian engaged in fraud and converted their invested funds. This case also went to arbitration where the customer was awarded $2,613,665 in damages.
- Gary Basralian was permitted to resign from his position at Royal Alliance Associates in December 2018 amidst these allegations.
- He was officially sanctioned by FINRA in March 2018. Basralian allegedly failed to comply with an investigation into how his employment with Royal Alliance Associates ended. Due to this alleged failure, he was barred by FINRA from acting as a securities broker in any fashion.
- In April 2018, more customers alleged that Gary Basralian committed fraud, misappropriated their funds, violated the RICO Act, breached contract, executed unsuitable transactions, and breached his fiduciary duty. This case is currently pending. The customers are seeking an undisclosed amount in damages.
- In August 2018, a customer alleged that Gary Basralian committed fraud and breached contract in connection to outside investments. This case was settled for $155,000 in damages.
What Does This Mean?
Gary Basralian was able to perpetrate this alleged fund conversion by recommending his customers give him money for investments outside of his member firm’s scope. These types of investments, should they actually exist and aren’t just fictitious entities fabricated for the purposes of misappropriating investor funds, are privately traded securities that are very poorly regulated. The main reason for this is that they are not traded on any public securities exchanges. Because of this, investors have a much harder time tracking what their investment is actually worth. More often than not, investors who have been placed in these private securities simply rely on the financial information provided to them by their securities broker. Less than scrupulous brokers can easily abuse this trust and manipulate investors into believing falsified information. If brokers are not being adequately supervised, they can solicit funds from investors under the guise of an outside investment, and then convert the funds for their own personal use.
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages. Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Gary Basralian, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.