Oakes & Fosher is presently investigating the possible misconduct of former securities broker Jerry Guttman. According to his publicly available FINRA BrokerCheck report, Jerry Guttman was involved in the selling of an unapproved security to multiple customers.

Jerry Guttman operated most recently as an Arizona based securities broker. He worked in the securities industry for twenty-six years. During his career, he was registered with eight different securities firms.

His Registrations

  • IDS Marketing Corporation (1983)
  • John Hancock Mutual Life Insurance Company (1991)
  • John Hancock Distributors, Inc. (1991)
  • PIM Financial Services (1996-1997)
  • Sun Investment Services Company (1991-1997)
  • First Allied Securities (1997-1998)
  • Hornor, Townsend & Kent (1998-2001)
  • United Planners’ Financial Services of America (2001-2017)

The Allegations

According to findings released by FINRA, Jerry Guttman sold more than $7 million worth of membership interests in at least six outside companies without disclosing it to his member firm. Jerry Guttman allegedly solicited these investments from thirty-one customers of his member firm. Due to these allegations, he was terminated from his position at United Planners’ Financial Services of America and barred by FINRA from acting as a securities broker in any fashion.

What Does This Mean?

Securities brokers are not allowed to solicit customers of their member firm to invest in private securities away from the firm without first receiving authorization from said member firm. This is because these types of private securities transactions can often be incredibly harmful to investors. A securities broker may begin recommending these private investments to their customers because they themselves have a financial stake in that investment, because they are receiving cash kickbacks from a third party, or simply because of the excessively high commission they receive when the transaction is executed. Any of these motivations create significant conflicts of interest which can lead to private products being recommended to investors that are woefully unsuited for them. It is the responsibility of the securities firm to prevent its customers from being harmed in this fashion. The firm is not absolved from liability simply because the broker fails to communicate their intent to engage in these private transactions. Firms need to have adequate procedures in place designed to supervise its registered brokers and prevent them from engaging in any unauthorized and potentially harmful activities.

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 Jerry Guttman, 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.