Jerry Lou Guttman of Phoenix, Arizona, a stockbroker formerly registered with United Planners’ Financial Services of America, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity by consenting to findings that he sold $7,000,000.00 worth of investments to customers away from his firm. Letter of Acceptance, Waiver and Consent, No. 2017055800301 (Nov. 15, 2017).
According to the AWC, from September of 2008 to May of 2017, membership interests in six limited liability companies were sold by Guttman to thirty-eight investors without Guttman ever having obtained approval from United Planners’ Financial Services. Particularly, thirty-one customers of the firm and seven non-firm customers contributed a collective $7,000,000.00 in return for the membership interests.
Evidently, Guttman took part in the transactions through his management of the entities; collection and deposit of the customers’ funds into bank accounts controlled by the entities; creation and facilitation of the agreements to invest in the companies; and correspondence and recommendations to customers regarding the investments. FINRA found that Guttman’s private securities transactions were violative of FINRA Rules 2010 and 3280, as well as NASD Rules 2110 and 3040.
FINRA Public Disclosure confirms that on September 20, 2017, United Planners Financial Services of America fired Guttman for selling away. Guttman has also been fired from previous employer, Hornor Townsend & Kent, Inc., supported by allegations that he submitted false documentation about a customer’s sales charges on a mutual fund purchase.
Moreover, Guttman has been identified in three customer initiated investment related disputes containing allegations of Guttman’s misconduct while employed with United Planners’ Financial Services of America and Hornor, Townsend & Kent, Inc. Specifically, on December 28, 2004, a customer initiated investment related civil action was brought in the Superior Court of the State of Arizona involving Guttman’s conduct, which has been settled for $550,000.00 in damages resting on accusations that the customer was provided misleading documentation in regard to insurance premiums assessed to the customer on a variable life insurance policy. Civil Action No. CV 2002-016246 (Dec. 28, 2014).
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