Securities Arbitration Lawyers BlogFINRA Bars Clark Gardner from Securities Industry for Converting Customer Funds
Clark Smith Gardner, of Orem, Utah, submitted an AWC in which he was barred from association with any FINRA member in any capacity. Gardner was registered with Cetera Advisors, LLC until May, 2014. Without admitting or denying the findings, Gardner consented to the sanction and to the entry of findings that he used customer funds for his own benefit. An investor provided Gardner with a check for almost $250,000 for an investment opportunity sold by Gardner. Gardner put the money into his personal bank account and failed to invest any of the funds on the customer’s behalf. Instead, Gardner used the customer’s money to repay funds Gardner owed to other individuals. Gardener also engaged in an outside business activity by serving as a real estate agent of an investment company without his member firm’s knowledge or consent. Gardner facilitated the customer’s $150,000 real property investment through the company, without the firm’s permission, and received $20,000 from the company for facilitating the transaction. (FINRA Case #2014041351601) Real estate scams have become increasingly popular as advisors recommend real estate as part of an overall investment strategy or are tempted to become principals in deals with a conflict of interest to the advisor’s customers. However, brokerage firms frequently prohibit advisors from investing in deals with clients.
We are currently involved in multiple cases against brokerage firms for mismanagement of elderly investors’ accounts and/or improper conflicts of interest between the financial advisor and the customer. We routinely work closely with estate planning attorneys to help resolve disputes between family members regarding the management of an elderly family member’s financial affairs and we are frequently consulted regarding the improper sale of securities or mismanagement of the portfolio by a fiduciary, trustee or other trusted advisor.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.