Gary Francis Harpe of Farmington Hills, Michigan, a stockbroker registered with PFS Investments Inc., is the subject of an enforcement action initiated by Financial Industry Regulatory Authority (FINRA) in which the regulator is seeking sanctions against Harpe based upon allegations that Harpe failed to provide documents and information requested by FINRA in an investigation. Department of Enforcement v. Gary Francis Harpe, Disciplinary Proceeding No. 2023077591501 (April 26, 2024).
On January 10, 2023, PFS Investments reportedly terminated Harpe’s registration, citing a criminal charge for larceny. This termination prompted FINRA to investigate the circumstances surrounding his departure, the felony charge, and if Harpe failed to disclose financial events such as liens and judgments.
To proceed with their inquiry, FINRA made three separate requests for documents and information from Harpe. These requests were essential for determining whether Harpe violated federal securities laws or FINRA rules.
On May 8, 2023, FINRA staff requested that Harpe provide documents and information related to the nature of his criminal charge, and information about compromises with creditors, liens, bankruptcies, and judgments involving Harpe. The response to this request was due by May 22, 2023. Harpe did not respond to the May 8 request or seek an extension of the deadline.
When Harpe did not respond to the first request, FINRA sent a second request on June 5, 2023, again seeking the same documents and information. This time, the request was sent to both of Harpe’s addresses. Harpe again did not respond to this request or seek an extension. Due to the lack of response, FINRA issued a third request on July 27, 2023. Harpe did not respond to the third request or seek an extension.
The requests FINRA made were necessary for its investigation into the charge against him for larceny by conversion and the possible failure to disclose financial events such as creditor compromises, judgments, and liens. Therefore, Department of Enforcement alleged that Harpe failed to cooperate in the investigation, violating FINRA Rules 2010 and 8210.
Harpe was associated with PFS Investments in Farmington Hills, Michigan, from February 5, 1998, to January 10, 2023.
