David G. Gott, of Tipton, Iowa, a stockbroker formerly registered with Ausdal Financial Partners, Inc., gott fined $5,000.00 and gott suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he sold away an investment in an ice cream company from his firm. Letter of Acceptance, Waiver and Consent, No. 2015047392002 (July 12, 2017).
According to the AWC, from November of 2014 to July of 2015, Gott effected private securities transactions involving an entity Gott created in 2013 called Gott Ice Cream, which did business as David’s Famous. Apparently, the activity was approved by Ausdal Financial Partners, Inc. because it was construed by the firm as an outside business activity. Yet, the AWC stated that Gott subsequently raised $546,000.00 from four customers who made debt and equity based investments in the company. The securities transactions in this regard were evidently not made known to the company. Consequently, Gott’s conduct was found by FINRA to be violative of Rules 2010 and NASD Rule 3040.
FINRA Public Disclosure reveals that Gott has been previously suspended by FINRA based upon his failure to provide information to FINRA staff after it was requested of him. Letter No. 2015047392001 (Mar. 14, 2016).
I read about this case from other sources, and I agree that it may be an instance of FINRA overzealousness. After all we are talking about ice cream and Iowa. We understand that it is good ice cream, and the business is doing well, very popular etc. I guess it should not matter. There is always a story behind some wonderful investment or scheme. Here, customers are lucky it was just ice cream.
Guiliano Law Group
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