Gary Lyle Pevey of Sacramento, CA, a stockbroker registered with Mutual Securities Inc., was the subject of a customer initiated investment related FINRA securities arbitration claim that was settled for $26,206.00 in damages based upon allegations that Pevey committed fraud in connection with the sale of real estate securities during the time that Pevey was associated with Mutual Securities Inc. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-01356 (September 22, 2020). The claim also alleges that Mutual Securities Inc. failed to supervise Pevey’s activities.
FINRA Public Disclosure shows that Pevey has been referenced in two other customer initiated investment related disputes concerning Pevey’s conduct while associated with Mutual Securities Inc. On April 29, 2019, a customer filed an investment related complaint involving Pevey’s conduct in which the customer requested $134,009.35 in damages based upon allegations that Pevey committed fraud in connection with the sale of promissory notes.
Pevey was also referenced in a FINRA securities arbitration claim that was settled for $134,893.85 in damages based upon allegations that Pevey made unsuitable recommendations and that the securities broker dealer failed to supervise his sale of promissory notes. FINRA Arbitration No. 18-02922 (May 14, 2019).
On January 4, 2019, Pevey was fined $10,000.00 and suspended for one year from associating with any FINRA member in any capacity because Pevey engaged in private securities transactions. Letter of Acceptance, Waiver, and Consent No. 2018057586601.
According to the AWC, between June 2016 and August 2017, during the time that he was associated with Mutual Securities Inc., Pevey took part in undisclosed private securities transactions. FINRA states that Pevey solicited investors to buy promissory notes relating to Woodbridge Group of Companies. Pevey ultimately sold a total of $1,110,000.00 in promissory notes to 15 investors and received $40,027.00 in commissions. Mutual Securities prohibited stockbrokers from engaging in private securities transactions without providing prior written notice to the securities broker dealer and getting its approval. Therefore, Pevey violated FINRA Rules 2010 and 3280.
Pevey was associated with Mutual Securities Inc. in Sacramento, CA, as a stockbroker from March of 2011 to February of 2018. Mutual Securities Inc. discharged Pevey on February 23, 2018, based upon allegations that Pevey engaged in private securities transactions.