Gary Lyle Pevey of Sacramento California a stockbroker formerly registered with Mutual Securities Inc. is referenced in a customer initiated investment related written complaint on April 29, 2019 where the customer requested $134,009.35 in damages founded on accusations that (1) the customer had been sold speculative and fraudulent investments which led the customer to experience unwarranted investments losses and (2) Pevey’s promissory note sales failed to be supervised by Mutual Securities Inc.
FINRA Public Disclosure confirms that another customer filed an investment related arbitration claim regarding Pevey’s conduct which was settled for $134,893.85 in damages supported by allegations of Mutual Securities neglecting to supervise Pevey’s actions which caused the customer to be sold a fraudulent investment. FINRA Arbitration No. 18-02922 (May 14, 2019).
Pevey has been fined $10,000.00 and suspended for one year from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he effected Woodbridge Group of Companies LLC promissory notes investments without either informing Mutual Securities or procuring permission from the securities broker dealer. Letter of Acceptance Waiver and Consent No. 2018057586601 (Jan. 4, 2019).
According to the AWC, investors had been solicited by Pevey in regard to the Woodbridge notes when Pevey was associated with Mutual Securities. During this time, an estimated $1,110,000.00 in promissory notes had been sold by Pevey to at least five of the firm’s customers and ten additional investors. The AWC indicated that Mutual Securities maintained procedures at the time which strictly prohibited the stockbrokers from engaging customers in securities transactions outside of the firm’s auspices, and those restrictions included promissory note transactions. FINRA found Pevey’s failure to comply with the firm’s policies in this respect to be violative of FINRA Rules 2010 and 3280.
On February 23, 2018, Pevey was discharged by Mutual Securities for selling away from the firm in violation of both the firm’s policies as well as FINRA Rule 3280.
