Gary Lyle Pevey of Sacramento California a stockbroker formerly associated with Mutual Securities Inc. has been referenced in a customer initiated investment related arbitration claim in which the customer requested $100,001.00 in damages supported by allegations that the customer had been defrauded by making a real estate security purchase in September of 2016 during the period in which Pevey was employed by Mutual Securities Inc. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-01356 (Apr. 20, 2020).
According to the claim, state and federal securities laws were violated through Pevey’s actions. The claim also alleges that losses were due to the stockbroker’s negligence and his failure to comply with a contractual arrangement or a fiduciary duty that was owed to the customer. Misrepresentations had allegedly been made by Pevey and his investment recommendations were not suitable for the customer.
FINRA Public Disclosure reveals that Pevey has been identified in two additional customer initiated investment related disputes containing allegations of his misconduct while employed by Mutual Securities. He is the subject of a customer initiated investment related complaint on April 29, 2019 in which the customer requested $134,009.35 in damages based upon allegations that the customer was defrauded by investing in alternative investments through Pevey during the time that Pevey was associated with Mutual Securities.
On May 14, 2019, a customer initiated investment related arbitration claim concerning Pevey’s activities was resolved for $134,893.85 in damages founded on accusations that the customer was placed into speculative and fraudulent promissory notes and that Pevey’s activities lacked supervision by Mutual Securities. FINRA Arbitration No. 18-02922.
FINRA Public Disclosure also indicates that Pevey has been fined $10,000.00 and suspended for twelve months from associating with any FINRA member in any capacity according to findings that Pevey sold Woodbridge Group of Companies LLC promissory notes while registered with Mutual Securities but away from the securities broker dealer. Letter of Acceptance Waiver and Consent No. 2018057586601 (Jan. 4, 2019). According to the AWC, at least five Mutual Securities customers and ten additional investors had been sold $1,110,000.00 in promissory notes without Pevey having sought or obtained permission from Mutual Securities. FINRA determined that Pevey’s private securities transactions were violative of FINRA Rules 2010 and 3280.
Public Disclosure reveals that a Chapter 11 bankruptcy petition had been filed by Woodbridge following the investors’ purchases of the promissory notes. Robert H. Shapiro – who founded Woodbridge – was permanently enjoined from committing violations of federal securities antifraud laws, disgorged of unlawful gains and had been required to pay a $100,000,000.00 civil penalty based upon allegations that Woodbridge was a Ponzi scheme. Securities and Exchange Commission v. Robert H. Shapiro et al. Case No. 1:17-cv-24624-MGC (S.D. Fla. Dec. 27, 2018).
Pevey had been discharged by Mutual Securities on February 23, 2018 for selling away.