Gary Francis Harpe, of Farmington Hills, Michigan, a stockbroker registered with PFS Investments Inc., has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Harpe failed to appear, and failed to provide documents when it conducted an investigation into his activities to identify potential FINRA rule violations. Department of Enforcement v. Gary Francis Harpe, Default Decision No. 2023077591501 (September 12, 2024).
FINRA Rule 8210 requires stockbrokers and other registered individuals to provide any documents, information, or testimony requested by FINRA during an investigation. This rule gives FINRA the authority to inspect and copy records relevant to their investigations, even without a subpoena. If a person fails to cooperate by not providing the requested documents or information, they typically violate this rule.
According to the AWC, PFS filed a Uniform Termination Notice for Securities Industry Registration (Form U5) on January 10, 2023 disclosing that it terminated its association with Harpe “due to the nature of the disclosure event” on his Form U5, which references a felony
charge of larceny
As part of the investigation, FINRA requested documents related to the nature of the criminal charge, as well as information about any bankruptcies, judgments, or other financial matters involving Harpe.
FINRA sent three separate requests for these documents and information. The first request, sent on May 8, 2023, was mailed to Harpe’s last known address as recorded in FINRA’s system. The U.S. Postal Service could not confirm delivery of the certified mailing, but the first-class mail was not returned, so FINRA considered Harpe to have received it. Harpe failed to respond.
On June 5, 2023, FINRA sent a second request to Harpe’s address and a new address identified through a search in Farmington Hills, Michigan. Again, the certified mail was returned, but the first-class mail was not, and Harpe did not respond or ask for an extension.
A third request was sent on July 27, 2023, by both certified and first-class mail to both addresses, as well as via FedEx. The certified mail was again returned undelivered, but FINRA did not receive any returned first-class mail. Harpe still failed to respond or provide the requested documents.
Harpe violated Rules 8210 and 2010.
Harpe was associated with PFS Investments Inc. in Farmington Hills, Michigan, from February 5, 1998, to January 10, 2023.
