Clark Smith Gardner of Orem Utah a stockbroker formerly employed by Cetera Advisors LLC has been barred by Securities and Exchange Commission (SEC) from associating with any brokerage firm or investment advisory according to an Order Instituting Administrative Proceedings in which Gardner consented to findings that he committed securities fraud. In the Matter of Clark S. Gardner File No. 3-17298 (June 15, 2016).
SEC’s Order stems from Gardner pleading guilty to committing securities fraud in violation of Utah Code Ann. § 61-1-1. State of Utah v. Clark Smith Gardner, Case No. 151906284 (Feb. 12, 2016). Apparently, Gardner confirmed that between November of 2011 and April of 2014, during the time that he was registered with Sammons Securities Company LLC and Cetera Advisors LLC, property and money had been procured by Gardner by way of his fraudulent activities. SEC viewed Gardner’s guilty plea as grounds for his permanent bar from the securities industry.
This is not the first time that Gardner has been subject of a disciplinary action by a securities regulator. Particularly, he has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he converted a customer’s funds. Letter of Acceptance Waiver and Consent No. 2014041351601 (Sept. 26, 2014).
According to the AWC, in April of 2014, Gardner retrieved a check for $243,000.00 from RK – a Cetera Advisors customer who authorized Gardner to invest the customer’s funds. Yet, Gardner reportedly deposited the customer’s check into a bank account in Gardner’s name, failing to invest RK’s money. The AWC stated that unbeknownst to RK, Gardner ultimately utilized RK’s funds for Gardner’s personal benefit. The AWC additionally revealed that Gardner facilitated a real estate transaction for RK away from the firm in violation of the firm’s policies. FINRA found that Gardner’s conversion and outside business activities were violative of FINRA Rules 2010, 2150(a) and 3270.
FINRA Public Disclosure reveals that Gardner has been identified in three customer initiated investment related disputes containing allegations of Gardner’s misconduct during the time that he was employed by Cetera Advisors, Walnut Street Securities, Inc. and Parkland Securities, LLC. Specifically, on April 14, 2015, a customer initiated investment related complaint involving Gardner’s conduct was settled for $263,000.00 in damages supported by accusations that the customer’s real estate investment was not suitable for the customer.
Moreover, a customer filed an investment related civil action involving Gardner’s activities in which the customer sought $75,000.00 in damages founded on allegations of breach of fiduciary duty through misrepresenting the structure and benefits of the customer’s insurance plan. Civil Action No. 214CV05286MAM (Mar. 22, 2018). Another customer filed an investment related arbitration claim involving Gardner’s conduct where the customer requested $99,999.99 in damages based upon accusations that the customer was inappropriately advised by Gardner to enter into a promissory note transaction. FINRA Arbitration No. 18-00808 (Mar. 6, 2018).
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