According 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.