FINRA Sanctions Broker Garyn Angel Over Transactions in Baron Energy

shutterstock_186555158According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Garyn Angel (Angel) has been sanctioned by the regulator in connection with allegations that Angel participated in two private securities transactions without providing prior written notice to his employing member firm, a practice referred to in the industry as selling away. FINRA also alleged that Angel settled a customer complaint without notifying his firm. In addition to FINRA’s claims Angel has been the subject of at least three customer complaints. The customer complaints against Angel allege a number of securities law violations including that the broker made unsuitable investments, negligence, fraud, and breach of fiduciary duty among other claims. Many of the customer complaints against Angel involve allegations relating to certain non-traded real estate investment trusts (Non-Traded REITs). Those Non-Traded REITs include Wells REIT and Inland American REIT.

From February 1999 through March 31, 2009, Angel was registered with FINRA and associated with brokerage firm Transamerica Financial Advisors, Inc. (Transamerica). Thereafter, Angel became associated with Invest Financial Corporation (Invest) through February 2013.

FINRA alleged that in December 2008, Angel recommended that a Transamerica customer purchase shares of Baron Energy, Inc. (Baron Energy), a pink-sheet traded penny stock that was trading at approximately $.50 per share. After making the recommendation, FINRA found that Angel put the customer in contact with a specific individual at Baron Energy and the client purchased 168,000 shares of Baron Energy for $84,000. According to FINRA, Angel did not provide written notice to Transamerica of his participation in the client’s purchase of Baron Energy.

FINRA alleged that after the client’s purchase of Baron Energy its value declined to approximately $.05 per share. FINRA then found that the client demanded that Angel recoup her losses in November 2011 while Angel was associated with Invest. At that time, FINRA found that Angel and the customer entered into a settlement agreement where Angel agreed to buy the client’s Baron Energy shares back from her for $84,000. FINRA found that Angel did not notify Invest of this purchase agreement nor did Angel notify either Invest or Transamerica that he had settled the customer’s complaint regarding her Baron Energy investment.

Investors who have suffered losses may be able recover their losses through securities arbitration. The attorneys at Gana Weinstein LLP are experienced in representing investors in cases where their broker has acted inappropriately. Our consultations are free of charge and the firm is only compensated if you recover.