The New Jersey Bureau of Securities said it revoked the registration of an investment adviser representative for selling more than $12 million of unregistered securities, including investments tied to a Ponzi scheme and other investment scams.
Gary Scheer, managing member and sole investment adviser representative of Retirement Financial Advisors, in Morristown, N.J., was also assessed $750,000 in civil penalties, according to a release from state regulators.
Mr. Scheer recommended and sold unregistered securities in seven investments to at least 50 investors from 2010 through 2018, the regulator said. Six of the seven investments ultimately were determined by either federal and/or state authorities to be fraudulent generating more than $600,000 in commissions for Mr. Scheer, regulators said.
[More: Alaska slaps ‘adviser’ with $7.4 million in penalty for issuing and selling unregistered securities]
“Investment advisers are expected to serve the interests of their customers with undivided loyalty, and not exploit them for financial gain,” New Jersey Attorney General Gurbir S. Grewal said in the release. “We will not allow unscrupulous professionals to undermine the integrity of New Jersey’s financial industry by enriching themselves at the financial expense of their customers.”
The investments included the unregistered Woodbridge securities, an alleged $1.2 billion Ponzi scheme that defrauded 8,400 real estate investors nationwide, and the unregistered Northridge securities, an alleged fraudulent real estate investment, which was recently tied to charges by the Securities and Exchange Commission, regulators said in the release.
RIA aggregator adds $4.8 billion in client assets across seven states as demand grows for alternatives to traditional succession models.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Shareholder targets FS KKR Capital's directors over alleged portfolio valuation and dividend missteps.
UBS has a history of costly litigation stemming from the sale of volatile investment products.
New director David Woodcock puts firms on notice over fees, conflicts, and liquidity risk as private credit shows signs of stress.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
