FINRA has barred former broker Gary Basralian (CRD# 14385) after allegations of stealing more than $2 million from two clients and using the money to pay his personal expenses. He is charged with two counts of wire fraud and one count of investment adviser fraud. His last employer was Royal Alliance Associates, Inc. (CRD# 23131) of Maplewood, NJ, from 11/19/1989 through 12/20/2017.
His previous employment record includes (locations not available):
- Integrated Resources Equity Corporation (CRD# 6403), from 07/18/1984 through 11/19/1989
- WZW Financial Services, Inc. (CRD# 5717), from 07/06/1983 through 06/28/1984
- Cornerstone Financial Services, Inc. (CRD# 953), from 03/31/1980 through 07/05/1983
- KCF Insurance Agency, Inc. (CRD# 8127)
- American General Capital Planning, Inc. (CRD# 146), from 06/20/1977 through 04/30/1980
- First Investors Corporation (CRD# 305), from 05/22/1974 through 07/06/1977
According to the complaint, from August 2007 through November 2017, Basralian allegedly misappropriated monies from two of the firm’s clients. The individuals were identified in the complaint as “Victim 1” and “Victim 2,” and were told that their investment funds would be invested in brokerage accounts at his firm. The investments were alleged to be in high-interest loans and real estate, and Basralian would manage the funds for them. Basralian asked the first individual to begin making deposit checks out to “Masters Financial,” indicating that the funds would be added to her firm brokerage account. The funds were actually deposited into an account Basralian had control over, and he used for his personal expenses.
Basralian began moving funds by wire transfer from Victim 2’s account in 2009 into several of his personal accounts, and used the money himself. When Victim 2 began asking why her account was losing money, Basralian supplied her with a created spreadsheet showing that the funds were invested as loans with various companies, and would be paid back with substantial interest.
Basralian was previously registered as a broker and an investment advisor, and resigned from Royal Alliance on 12/12/2017. A customer filed a complaint on 12/17/2017. The firm submitted Form U5 that formally terminated his registrations on 12/20/17, and reported that he “resigned after customer allegation of fraud and breach of contract related to investments away from the firm.” Basralian is no longer registered or affiliated with any FINRA member firm.
FINRA sent two requests for information to Basralian. His counsel responded by letter to FINRA on January 29, 2018, that Basralian would not supply any information to FINRA and would not participate in any investigations. Basralian signed an Acceptance, Waiver & Consent (AWC) that neither confirmed nor denied findings, and accepted a permanent bar from any FINRA firm or activity. He signed the AWC on 3/18/2018, and it was accepted by FINRA on 3/20/2018.
The New Jersey Bureau of Securities issued a Summary Revocation Order against Basralian that revoked his agent and investment adviser representative registrations on May 22, 2018. He was arrested the next day.
Contact Our Firm if You’ve Invested with Gary Basralian
Silver Law Group has extensive experience representing investors in elder financial fraud cases and real estate investment fraud. Scott Silver was recently featured in a story, “$1.2 billion scheme allegedly utilized discredited brokers across the country.” As a recognized leader for victims of securities and investment fraud, Scott is the Chairman of the American Trial Lawyer’s Securities and Investment Fraud Group.
Did you invest money with Gary Basralian? Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney toll free at 800-975-4345. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.