Ronald G. Richer of New York New York a stockbroker formerly employed by Garden State Securities Inc. has been identified in a Financial Industry Regulatory Authority (FINRA) investigation in which a preliminary determination was made for Department of Enforcement to pursue an enforcement action against Richer based on accusations that he provided false documentation to FINRA personnel and that he borrowed one of his customer’s funds without authorization. FINRA Case No. 2019062014501 (June 5, 2020).
According to FINRA Public Disclosure, Richer was the subject of a FINRA investigation that commenced in 2020 when the regulator learned that he could have potentially borrowed money from a customer of Garden State Securities in violation of firm policy and FINRA rules. On May 12, 2020, Garden State Securities reported to FINRA personnel that Richer had been discharged from employment because he took a loan from a customer without the securities broker dealer’s knowledge or consent. Garden State Securities also alleged that it and FINRA both received a false bank record from Richer.
FINRA allegedly asked Richer to turn over documentation or information and to provide recorded testimony in regard to his activities. The regulator indicated that Richer falsified information and documentation in response to this request and that he failed to testify. The stockbroker potentially violated FINRA Rules 3240, 8210 and 2010.
Richer has been identified in four customer initiated investment related disputes containing allegations of his misconduct while employed with Global Arena Capital Corp and Garden State Securities. FINRA Public Disclosure reveals that a customer initiated investment related arbitration claim involving Richer’s conduct was settled to resolve allegations of bad investment advice being provided to the Global Arena Capital Corp customer by Richer as it pertained to over-the-counter equities transactions effected in the customer’s account.
On October 5, 2017, a customer initiated investment related arbitration claim concerning Richer’s activities was resolved for $30,000.00 in damages founded on accusations that the stockbroker’s negligence resulted in losses to a Garden State Securities customer. FINRA Arbitration No. 16-01562. According to the claim, unauthorized stock and over-the-counter equities trades were executed in the customer’s account. The claim also alleges that Garden State Securities Inc. failed to supervise Richer’s actions.
Richer is also the subject of a customer initiated investment related arbitration claim which was settled for $16,300.00 in damages supported by allegations that a fiduciary duty that was owed to the Garden State Securities customer was breached by Richer and that common and preferred stock and over-the-counter equities transactions failed to be suitable. FINRA Arbitration No. 18-00763 (Sept. 28, 2018). On December 3, 2019, another customer filed an investment related complaint pertaining to Richer’s conduct in which the customer requested $21,000.00 in damages supported by allegations of an over-the-counter equities transaction being effected by Richer without the customer’s permission during the period in which the stockbroker was employed by Garden State Securities.
Since August 12, 2004, Richer has been associated with at least two different securities broker dealers who have been expelled by regulators for violation of federal securities laws or who are otherwise defunct. He was registered with Garden State Securities between December 9, 2014 and May 14, 2020.
