Jerry Lou Guttman of Phoenix Arizona a stockbroker employed by United Planners’ Financial Services of America is referenced in a customer initiated investment related arbitration claim where the customer sought $1,700,000.00 in damages founded on accusations that (1) false or misleading statements were made to the customer by Guttman in regards to LLC membership interests and (2) the customer had been sold an investment from Guttman which failed to be suitable for the customer. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-01399 (Apr. 20, 2018).
FINRA Public Disclosure also confirms that this is the first customer initiated investment related dispute involving Guttman’s conduct since he was sanctioned by FINRA regarding his LLC membership interest sales. Guttman has been barred from associating with any FINRA member in any capacity founded on findings that between September of 2008 and May of 2017, during the time Guttman had been associated with United Planners, he sold LLC membership interests to customers away from the securities broker dealer. Letter of Acceptance Waiver and Consent No. 2017055800301 (Nov. 15, 2017).
According to the AWC, thirty eight investors, thirty-one of whom constituted United Planners customers, were collectively sold $7,000,000.00 in membership interests issued by six LLCs. These transactions had been effected between September of 2008 and May of 2017 without the permission of United Planners. Without informing United Planners, Guttman: steered the customers towards purchasing the LLC membership interests; spoke with customers regarding the terms of investing; formed investment agreements which customers submitted; facilitated customers’ purchases; and even served as a managing member of one of those LLCs. FINRA found Guttman’s failure to apprise United Planners about his private securities transactions to constitute violations of FINRA Rules 3280 and National Association of Securities Dealers (NASD) Rule 3040.
FINRA Public Disclosure reveals that Guttman has been identified in three additional customer initiated investment related disputes containing allegations of his misconduct during the time that he was employed by United Planners and Hornor Townsend Kent Inc. Specifically, a customer initiated investment related civil action brought in the Superior Court of the State of Arizona which involved Guttman’s conduct has been resolved for $200,000.00 in damages based upon accusations that the customer was provided misleading sales literature in reference to an insurance product the customer purchased evidenced by the customer being assessed charges and premiums which were not referenced within that literature.
Another customer initiated investment related complaint involving Guttman’s activities was settled for $8,911.00 in damages supported by allegations that unfounded statements had been made to the customer concerning the premiums required to keep the policy in force. An additional customer initiated investment related complaint in regard to Guttman’s conduct was settled to resolve accusations that stocks had been inappropriately sold from the customer’s account causing the customer to incur unwarranted tax liabilities.
Guttman was discharged by United Planners on September 20, 2017 founded on allegations of him selling away from the securities broker dealer.
