Gary Lyle Pevey of Sacramento California a stockbroker formerly registered with Mutual Services Inc. has been fined $10,000.00 and suspended for twelve months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he sold away from his firm. Letter of Acceptance Waiver and Consent No. 2018057586601 (Jan. 4, 2018).
According to the AWC, during the time that Pevey was associated with Mutual Services Inc., Pevey steered customers towards buying Woodbridge Group of Companies LLC. This supposed real-estate investment fund was not offered through the firm at the time. Apparently, a total of $1,110,000.00 in contributions to the Woodbridge Group of Companies LLC had been made by fifteen of Pevey’s customers in exchange for promissory notes. In return for Pevey’s efforts, Pevey was apparently paid commissions totaling $40,027.00.
Evidently, at the time that Pevey steered customers towards purchasing Woodbridge notes, Mutual Services Inc. maintained procedures which mandated that Pevey provide notification to the firm about outside transactions and obtain approval from the firm before engaging in them. The AWC stated that Pevey never bothered to inform Mutual Services Inc. about the transactions he solicited from the fifteen customers, and the firm never authorized Pevey’s actions. FINRA found Pevey’s conduct of selling away from the firm to be violative of FINRA Rules 2010 and 3280.
FINRA Public Disclosure reveals that a customer filed an investment related arbitration claim involving Pevey’s activities in which the customer sought $171,000.00 in damages based upon accusations that the customer had been sold speculative and fraudulent investments, and the firm failed to supervise Pevey’s activities. FINRA Arbitration No. 18-02922 (Aug. 17, 2018).
Mutual Securities Inc. discharged Pevey on February 23, 2018 supported by allegations that Pevey engaged in private securities transactions in violation of FINRA Rule 3280.
