Norman Gary Price of Gig Harbor Washington is a member of RP Capital LLC who is the subject of customer initiated investment related arbitration claim in which the customer requested $700,000.00 in damages supported by accusations of (1) suitability (2) conflict of interest (3) misrepresentation and (4) supervisory failures concerning the use of the customer’s monies for an investment in Aequitas. Financial Industry Regulatory Authority (FINRA) Arbitration No. 16-03187 (Nov. 15, 2016).
FINRA Public Disclosure reveals that Price has been identified in eleven additional customer initiated investment related disputes containing allegations of Price’s improper conduct during the time he was registered with RP Capital LLC and Strategic Capital Group LLC. In particular, a customer initiated investment related arbitration claim concerning Price’s conduct was resolved for $21,250.00 in damages based upon accusations of suitability and negligence relating to the customer’s real estate security, equity, equipment leasing and direct investment holdings. American Arbitration Association (AAA) Arbitration No. 75510042109 (Mar. 29, 2011).
Subsequently, a customer initiated investment related arbitration claim pertaining to Price’s activities was settled for $550,000.00 in damages supported by allegations of the mishandling of the customer’s investments in real estate securities, equipment leasing products and direct investment products. FINRA Arbitration No. 11-01490 (Dec. 17, 2012). Another customer initiated investment related arbitration claim regarding Price’s activities was resolved for $6,079.00 in damages founded on accusations of suitability and fraud concerning the customer’s hedge fund investment. FINRA Arbitration No. 13-00495 (July 9, 2014).
Then, a customer filed an investment related arbitration claim involving Price’s conduct where the customer sought $600,000.00 in damages supported by allegations that misrepresentations and omissions had been made to the customer; contractual and fiduciary obligations to the customer had been breached; the customer’s account was over-concentrated and handled in a negligent manner; and RP Capital LLC failed to supervise the customer’s alternative investment purchases. FINRA Arbitration No. 16-00943 (Apr. 18, 2016).
Another customer filed an investment related arbitration claim pertaining to Price’s activities in which the customer requested $1,810,000.00 in damages based upon accusations of fraud, misrepresentation, suitability, and failure to conduct due diligence concerning private placements sold to the customer that were issued by Aequitas. FINRA Arbitration No. 16-01610 (June 20, 2016). Moreover, a customer filed an investment related arbitration claim involving Price’s conduct where the customer sought $158,491.00 in damages supported by allegations of inadequate due diligence having been conducted on promissory note investments; inappropriate investment recommendations; and misleading or false statements having been made concerning the securities purchased by the customer. FINRA Arbitration No. 16-01967 (Aug. 31, 2016).
Additionally, on August 31, 2016, a customer filed an investment related civil action involving Price’s activities in which the customer requested $12,319,652.00 in damages founded on accusations including the breach of fiduciary duty, sale of unregistered securities, and failure to supervise the customer’s promissory note and direct investment product transactions.
Price has also been assessed a $50,000.00 fine by Securities and Exchange Commission (SEC) according to an Order Instituting Administrative Cease-And-Desist Proceedings containing findings that while Price was chief executive officer of a registered investment advisor, Strategic Capital Group, he failed to supervise the firm’s procedures and policies to ensure that they complied with the Investment Advisors Act of 1940. In the Matter of Strategic Capital Group, LLC and N. Gary Price, Administrative Proceeding File No. 3-16138 (Sept. 18, 2014).
According to the Order, commencing in May of 2011, hundreds of securities transactions had been executed with Strategic Capital Group’s advisory customers on a principal basis via RP Capital, LLC, despite customers never having consented to the transactions. Particularly, fixed-income securities had evidently been purchased by RP Capital from outside broker-dealers, only to be sold to customers of Strategic Capital Group at a higher price without Strategic Capital Group’s customers having been made aware that Strategic Capital Group acted as a principal via RP Capital.
Evidently, Strategic Capital Group filed Forms ADV in 2012 and 2013, wherein the firm failed to correctly represent that it had effected principal basis transactions. SEC found that those Forms ADV had been signed by Price in 2012 and 2013 even though he failed to ensure that the representations made in those forms were correct. SEC found that Price caused Strategic Capital Group to be in violation of Investment Advisors Act of 1940 Section 206(4), Rule 206(4)-7 and Section 207.
Price’s registration with RP Capital LLC was terminated on June 14, 2016.
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