Patrick Landon Garrett, a Stockbrokerwith Robert W. Baird & Co. Inc., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he made verbal misrepresentations to a customer, misused customer funds, and falsified firm documents. Letter of Acceptance, Waiver, and Consent, No. 2014040147501 (Aug. 4, 2015). Robert W. Baird & Co. Inc. discharged Garrett on January 13, 2014, amid allegations of his misconduct. Garrett is barred from acting as a broker or otherwise associating with firms that sell securities to the public, according to FINRA.
According to the AWC, in March-December of 2013, Garret reportedly misrepresented to his customer the value of her brokerage account and had falsified firm documents in order to recover some of the investment losses that Customer A suffered.
Garret, according to the AWC, misused the customer funds by moving stock in Customer’s A account (which had declined in value) to a joint brokerage account of two other customers, B and C. The AWC indicated that Garret had recommended the transaction to Customer B, misrepresenting to B that he would be receiving it at market prices. Garret, without Customers B’s and C’s knowledge, moved Customer A’s equity position to Customers B and C at Customer A’s purchase price, which was $3/share above the then-current market price. Consequently, this prevented a loss in Customer A’s account, but had caused an immediate $34,000 loss to Customers B & C.
The AWC further indicated that Garret misled his Firm concerning the aforementioned transactions. Garret reportedly processed these transactions through trade cancellations and corrections in order to falsely represent to his Firm that transactions came as a consequence of an initial trade error in Customer A’s account. FINRA found that by making the misrepresentation to his customers and misusing customer funds, all while falsifying firm documents, Garret had violated FINRA Rules 2010 and 2150, leading to his permanent bar.
Firms and individuals, not surprisingly, are prohibited from unauthorized use of customer funds, borrowing of a customer’s securities or funds, forgery, non-disclosures or misstatements of material facts, and various deceptions and manipulations. Such conduct can also be found to violate criminal and other civil laws, and be subject to sanction from the federal and state government bodies.
Public disclosure records via FINRA’s BrokerCheck reveal that Garrett has been subject to four disclosure incidents. On June 7, 2011, Garret settled a customer dispute for $100,000.00 after a client alleged that the financial advisor recommended unsuitable transactions. On January 14, 2014, Garret settled a customer dispute for $200,000.00 after alleging that Garrett had misrepresented the value of accounts and recommended unsuitable investments.
Guiliano Law Group
If you have been the victim of securities fraud and you have a complaint, you should consult with an attorney. The practice of Nicholas J. Guiliano, Esquire, and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.
