The law firm of Oakes & Fosher is presently investigating the alleged misconduct of Gary Strange. According to his publicly available FINRA BrokerCheck report, Gary Strange has been the subject of a FINRA sanction.
Gary Strange was a North Carolina based securities broker. He worked in the securities industry for twenty-one years. During his career, he was registered with four different securities firms. He is no longer working as a registered securities broker in any fashion.
His Registrations
- Pruco Securities Corporation (1994-1999)
- Mony Securities Corporation (1999-2002)
- Princor Financial Services Corporation (2002-2016)
- Cambridge Investment Research (2015-2016)
The Allegations
Gary Strange was officially sanctioned by FINRA in December 2017. The findings in this matter state that he allegedly violated his member firm’s policy by borrowing money from customers at his securities firm without getting approval from his firm. He allegedly received two separate loans. The loans also accompanied allegations of unsuitable recommendations, as he allegedly recommended to the customers that they liquidate their security holdings in a mutual fund so that they could make the loans to him. Strange also allegedly misrepresented the reasons he needed the loans in the first place. He also allegedly misrepresented when the funds would be returned to the customers and how the tax consequences would be handled as the funds were transferred from an IRA the customers held. Due to these allegations against him, he was fined $20,000, forced to pay $130,000 in restitution, and suspended by FINRA from acting as a securities broker in any fashion for a period of two years.
What Does This Mean?
Securities brokers are not allowed to solicit loans from their member firm customers under most circumstances. In the relationship between investor and broker, the broker is the one with the power. Because of this, investors might often feel an undue pressure when asked to loan the broker money. This might cause them to comply with the broker’s request in spite of their own financial circumstances. Investors, such as the ones mentioned above, might often make poor financial decisions in order to free up assets to provide the loan to their securities broker. Less than scrupulous securities brokers often exploit the trust between them and their customers and will misrepresent what the loan is for and/or the fact that it will be paid back in a timely manner. Securities firms want to prevent investors from being harmed in this fashion, which is why brokers are not allowed to solicit loans from their customers with authorization from their member firm.
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 Strange, please contact Oakes & Fosher for a free and private consultation. We work on a contingency basis, which means there are no fees charged unless we collect for you. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.
