Ralph Worthington, of New York, New York, chairman and chief executive officer of Gilford Securities, has been named in a customer initiated investment related arbitration claim on December 2, 2014, in which the customer requested $875,000.00 in damages based upon allegations that Gilford was liable, as a control person for the firm, for a subordinate stockbroker’s misconduct.
Worthington has been subject to six additional customer arbitrations. Particularly, on April 8, 1996, a customer was awarded $175,000.00 in damages per an investment related arbitration claim involving Worthington’s conduct, based upon allegations that Worthington was liable for a stockbroker who effected trades in the customer’s account on an unauthorized basis and made misrepresentations to the customer concerning investments.
On October 15, 1998, a customer initiated investment related arbitration claim involving Worthington’s actions was resolved for $345,000.00 in damages based upon the customer’s allegations of unfair sales practices. Subsequently, on December 31, 1998, a customer initiated investment related arbitration claim involving Worthington’s conduct was settled for $550,000.00 in damages based upon allegations that Worthington did not properly supervise a branch manager who mishandled the customer’s account.
Further, on January 22, 1999, a customer initiated investment related arbitration claim involving Worthington’s actions was resolved for $127,000.00 in damages based upon the customer’s allegations that Worthington failed to properly supervise a registered representative’s activities who caused a customer harm. On January 27, 1999, another customer initiated investment related arbitration action concerning Worthington’s conduct was settled for $150,000.00 in damages based upon allegations that Worthington failed to supervise a branch manager’s activities concerning customer accounts.
On September 30, 2011, Worthington was subject to Cease and Desist sanctions, a fine of $45,000.00 fine, and suspension for twelve months per an Order issued by the Securities and Exchange Commission. SEC Admin Release 33-9264, 34-65450 (Sept. 30, 2011). The Order contained findings that Worthington, as chief executive officer for Gilford Securities, failed to supervise a registered representative who effected distributions of securities which were not registered with the Securities and Exchange Commission.
Apparently, the securities were sold via a pump and dump scheme internationally, in which a Gilford Securities registered representative took part in effecting distributions pertaining to eight microcap stocks from issuers headquartered in Canada, Israel, and China. Apparently, the scheme generated more than $33,000,000.00 in proceeds.
Guiliano Law Group
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