Gary Nelson Savage Sr. of Huron Ohio a stockbroker and principal formerly registered with Wall Street Strategies Inc. has been fined $30,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to disclose customer disputes and timely cooperate with FINRA’s investigatory requests. Letter of Acceptance Waiver and Consent No. 2017052426201 (June 13, 2018).
According to the AWC, FINRA By-Laws Article V, Section 2 required Savage to make required disclosures of customer dispute alleging his sales practice violations within thirty days of Savage having learned about the customer dispute.
Particularly, Savage was subject of a customer initiated investment related arbitration claim in which the customer was awarded $557,874.21 in damages based upon Savage being found liable on the customer’s claims of Savage violating Ohio Securities Act Chapter 1707; breaching his fiduciary obligations to the customer; failing to conduct due diligence on investments; and effecting unsuitable transactions in the customer’s account. FINRA Arbitration No. 16-02054 (June 1, 2017). Evidently, Savage failed to disclose this incident within his U4 within thirty days of being apprised of it. FINRA found Savage’s failure to report the customer dispute to be violative of FINRA Rules 2010, 1122 and FINRA By-Laws Article V Section 2.
Moreover, Savage was cited by FINRA for having failed to timely cooperate with FINRA personnel in the course of FINRA’s firm examination. Specifically, on June 6, 2017, Savage was asked to provide information to FINRA personnel in anticipation of a FINRA examination of the firm’s business activities. Savage was expected to cooperate with FINRA by June 19, 2017. On June 21, 2017, Savage responded to FINRA’s request stating that the firm was no longer in operation and not in need of any examination. Personnel at FINRA determined that Savage was still obligated to provide information to the regulator. The AWC stated that Savage failed to provide information to FINRA by the deadline. Consequently, FINRA found Savage’s untimely response to be violative of FINRA Rule 8210.
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