The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Thomas Gallo. According to his publicly available FINRA BrokerCheck report, Thomas Gallo has been the subject of multiple customer disputes.
Thomas Gallo was a New York-based securities broker. He worked in the securities industry for twenty-three years. During his career, he was registered with eight different securities firms. He is no longer working as a registered securities broker in any fashion.
His Registrations
- Shearson Lehman Hutton (1987-1989)
- D.H. Blair & Co. (1989-1991)
- M.S. Farrell & Company (1991-2001)
- Kirlin Securities Inc. (2001-2003)
- Garden State Securities (2010-2014)
- Corinthian Partners (2014-2015)
- Newbridge Securities Corporation (2015-2017)
- Spartan Capital Securities (2017-2018)
The Allegations
- In November 1993, a customer alleged that Thomas Gallo recommended unsuitable investments. This case went to arbitration where the customer was awarded $38,000 in damages.
- In April 2001, a customer alleged that Thomas Gallo breached his fiduciary duty. This case went to arbitration where the customer was awarded $32,783 in damages.
- In June 2004, a customer alleged that Thomas Gallo recommended unsuitable investments, breached contract, made material misrepresentations, and breached his fiduciary duty. This case went to arbitration where the customer was awarded $50,000 in damages.
- In July 2017, a customer alleged Thomas Gallo made material misrepresentations to them and gave them unsuitable investment recommendations. This case is currently pending. The customer is seeking $35,000 in damages.
- In February 2019, Thomas Gallo was officially sanctioned by FINRA. The findings in this matter state that he negligently misrepresented a material fact in the sale of promissory notes to two investors. Due to these alleged actions, he was fined $10,000, forced to pay $33,337 in restitution, and suspended from acting as a securities broker in any fashion for a period of sixty days.
What Does This Mean?
Promissory notes are contractual agreements between two parties. Essentially, the issuing party solicits a loan from the lending party and “promises” to repay that amount–plus interest. Many recommending brokers like to push these notes onto unsuspecting investors by claiming they are much safer than purchasing actual equity. This is incorrect. These notes are only issued by risky, privately traded companies looking to expand in some fashion. The ability for these companies to repay these loans is entirely dependent upon their success. If the issuing company fails and defaults on these notes, then the note purchaser is in the exact same position if they had simply purchased equity in the incredibly risky company.
Oakes & Foher 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 Thomas Gallo, 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.
