Ronald G. Richer of New York New York a stockbroker formerly employed by Garden State Securities is named in a FINRA Department of Enforcement Complaint alleging that Richer had borrowed funds from a customer of the securities broker dealer without its authorization and he then tried to conceal his activities from both Garden State Securities and the regulator. Department of Enforcement v. Ronald G. Richer, Disciplinary Proceeding No. 2019062014501 (July 30, 2020).
According to the Complaint, when Richer was employed by Garden State Securities, he accepted funds from an elderly customer in violation of Garden State’s policies. Department of Enforcement alleges that Richer’s unapproved borrowing arrangement is violative of FINRA Rules 2010 and 3240. Richer is also alleged to have completed four of Garden State’s compliance questionnaires in which he failed to mention anything about the funds he borrowed. The stockbroker allegedly violated FINRA Rule 2010 in this respect.
The Complaint indicated that Richer tried to hide his misconduct when he was subject of a FINRA investigation. Richer was asked by FINRA to provide bank account statements and other documentation relating to the customer loan. Richer altered check images before handing them over to FINRA so that he could make it seem like the checks he wrote to the customer were instead payable to others. Richer also allegedly falsified testimony regarding his acceptance of funds. The stockbroker eventually admitted to altering the checks as well as receiving a customer’s loan. Department of Enforcement contends that Richer’s failure to be forthcoming in the investigation is violative of FINRA Rules 2010 and 8210.
Richer has been identified in four customer initiated investment related disputes containing allegations of his misconduct while employed by 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 the customer having received bad over-the-counter equities advice from Richer at Global Arena Capital Corp.
On October 5, 2017, another customer initiated investment related arbitration claim concerning Richer’s activities was resolved for $30,000.00 in damages founded on accusations that unauthorized trades were executed in the customer’s account by the stockbroker and that his negligence resulted in the customer’s losses. FINRA Arbitration No. 16-01562. The claim also alleges that Richer’s activities were not adequately supervised by Garden State Securities.
Richer has also been referenced in a customer initiated investment related arbitration claim which was settled on September 28, 2018 for $16,300.00 in damages supported by allegations that a fiduciary duty was violated by the stockbroker and that the over-the-counter equities and common and preferred stock transactions Richer facilitated had failed to be suitable for the Garden State Securities customer. FINRA Arbitration No. 18-00763. 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 unauthorized equity trading by Richer at Garden State Securities.
Richer was discharged by Garden State Securities on May 12, 2020 based upon accusations of his unauthorized receipt of a customer loan and his alteration of documents that were provided to FINRA personnel.