Gregory Williams (Gregory Jon Williams, CRD# 1561089) is a previously registered broker and investment advisor whose last known employer was Forta Financial Group, Inc. (CRD#:28784) of Greenwood Village, CO. His previous employers include Morgan Stanley Smith Barney (CRD#:149777) and Citigroup Global Markets Inc. (CRD#:7059) of Denver, CO, and Banc One Securities Corporation (CRD#:16999) of Chicago, IL. He has been in the industry since 1986.
FINRA initiated an investigation into the allegations against Williams, which included letters requesting information. Williams failed to respond to these requests. FINRA then suspended Williams effective 4/22/2022, or until he provides the information. As of 4/22/2022, he had not responded to these requests, and FINRA notified him in a letter on 3/29/2022 pf the suspension. If Williams fails to request a termination of his suspension within three months, he will be permanently barred from FINRA association as of July 5, 2022.
Williams is also currently the subject of six pending customer disputes with nearly identical allegations of unsuitability, misrepresentation, and negligence. The most recent dispute was filed on 4/1/2021, alleging “breach of fiduciary duty, negligence and violation of state and federal securities laws between November 2013 and February 2021.” The customer requests damages of $30,000.
The previous claims were filed between 3/31/2020 and 10/26/2020. The collective requested damages total $1,349,000. In two of the four claims, the firm denies the claims and will defend themselves.
A previous customer dispute filed on 3/29/2020 involving multiple claimants also included allegations of unsuitability, negligence, fraud, and misrepresentation. This case went into FINRA arbitration. Although the six claimants requested damages of $578,821.00, ultimately, only two of the claimants were awarded anything, damages totaling $45,818.00. The other four claimants were denied damages.
Another claim filed on 6/15/2018 is also listed as “pending,” and contains similar allegations. The client requests damages of $1,200,000.00. Williams denies those allegations.
Unsuitable Investment Recommendations
Brokers and broker-dealers are required to only make suitable investment recommendations to their customers, pursuant to FINRA Rule 2111 and FINRA Rule 2090.
That means a broker needs to have a “reasonable basis to believe a recommended transaction or investment strategy…is suitable” for the customer based on their financial situation, risk tolerance and ability to understand the risks, age, and investment objectives.
FINRA rules state that stockbrokers have an obligation to ensure that a series of transactions they recommend in a customer’s account appears suitable when viewed in isolation and in aggregate. The transactions must not be excessive or unsuitable when viewed in aggregate given the customer’s investment profile.
Unsuitable investment recommendations are a common cause for investors making FINRA arbitration claims.
Did You Invest With Gregory Williams?
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