Gary Saitowitz Allegedly Invests Multiple Customers In Unsuitable Non-Traded REITs

Many investors are unaware of the legal recourse available to them after losing money due to securities fraud and/or negligence. The truth is that investors who have lost money in this fashion may be entitled to damages. The law firm of Oakes & Fosher is interested in hearing from investors who believe that this may be them.

Oakes & Fosher is currently investigating the possible misconduct of former securities broker Gary Saitowitz. According to his publicly available FINRA BrokerCheck report, Gary Saitowitz has been the subject of a FINRA sanction.

Gary Saitowitz was a Georgia based securities broker. He worked in the securities industry for fifteen years. During his career, he was registered with six different securities firms.

His Registrations

• WMA Securities (2000-2002)


• Wold Group Securities (2002-2008)


• Summit Brokerage Services (2008-2009)


• Kovack Securities (2009-2012)


• Transamerica Financial Advisors (2012-2014)


• IFS Securities (2014-2016)

The Allegations

Gary Saitowitz was sanctioned by FINRA in January 2017. The findings in this matter state that he had multiple customers sign blank and incomplete brokerage forms. These pre-signed forms authorized fund transfers or authorized loans from customer accounts. The findings went on to state that although the firm had a limit on how much of a customer's assets could be invested in non-traded REITs, Saitowitz ignored this by creating false financial documents that over-stated customers' liquid net worth. The findings state that Gary Saitowitz initiated this charade to hide the fact that he recommended to four customers, one of which was a senior citizen, that they invest an unsuitable amount of money into non-traded REITs. Doing this was contrary to the customers' investment objectives and risk tolerance. Due to these alleged actions, Gary Saitowitz was suspended from acting as a securities broker in any fashion for a period of eighteen months. He was also fined $10,000 and forced to pay $11,455 in restitution.

Non-Traded REITs

Non-traded REITs, or Real Estate Investment Trusts, are privately traded securities that are not sold on any public securities exchanges. Due to their private nature, there is a great potential for oversight when purchasing these products. Securities brokers use this to their advantage as non-traded REITs are highly unsuitable for most investors.

These products are illiquid and speculative securities that are only meant to be sold to what are known as "accredited" investors. To qualify as an accredited investor, an individual must have a net worth of at least $1 million, or have a yearly income of at least $200,000. The allegations levied against Gary Saitowitz by FINRA state that he fabricated his customer's financial information to give them the appearance of being accredited.

Oakes & Fosher Can Help

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 Saitowitz, please contact Oakes & Fosher for a free and private consultation.