The SEC has
issued an Order instituting administrative and cease-and-desist proceedings against former broker Gary M. Arford (CRD# 2440941).
According to the SEC, Arford served as an investment adviser for a private
fund from December 2010 until October 2013. During this time, he was registered
with the brokerage firm Geneos Wealth Management, Inc. in Lynnwood, Washington.
Arford allegedly defrauded investors and the fund in multiple ways. The
SEC allegations include:
- Inducing the private fund to invest $4 million in a company that had supposed
plans to build and operate a hotel in Seattle on an undeveloped land.
Arford allegedly misrepresented or concealed material facts regarding
substantial debt of the company and encumbrances on its undeveloped property.
- Taking control of the undeveloped property and used it as collateral for
- Inducing the fund to continue the investment by failing to inform the fund
of the personal ownership and use of the undeveloped property, as well
as misrepresenting and concealing the use of the fund’s assets regarding
- Misappropriating assets from the fund for expenses unrelated to the intended
Arford’s regulatory report also reflects that he has been the subject
of ten customer disputes since 2004 and has been terminated from two brokerage
firms. Four of the customer disputes are currently pending.
In response to the SEC Order, Arford submitted an Offer of Settlement imposing
sanctions which the Commission has decided to accept. The sanctions include
a permanent bar from Arford having any association with a broker-dealer
or investment advisor and a total of $4,247,940 in disgorgement and civil
If you have invested and lost money with advisement from Gary M. Arford,
speak with our securities fraud attorneys today. Meyer Wilson stands up
for the rights of individuals who have been defrauded by investment advisers.
Call today to request your
free case evaluation and learn if we can help you.