The securities fraud attorneys at Meyer Wilson are currently investigating claims against broker Gary Saitowitz (CRD# 4238395).
Former Transamerica Financial Advisors, Inc. and IFS Securities broker and investment adviser Gary Saitowitz (CRD# 4238395) was suspended from associating in any capacity with any Financial Industry Regulatory Authority (FINRA) member for a period of 18 months, effective starting December 9, 2016. He was also fined $10,000 for his actions and requited to pay $11,455 plus interest in restitution to a client he defrauded during his time working at Transamerica Financial Advisors, Inc.
FINRA’s Letter of Acceptance, Waiver and Consent brought up six key points highlighting Saitowitz’s actions that resulted in his suspension and fine (the following are all allegations made by FINRA against the broker):
- He Had Customers Sign Incomplete and Blank Forms: According to FINRA, Saitowitz allegedly had his customers sign these forms before he placed them in customer files maintained as records and books for Transamerica Financial Advisors, Inc. Some of these forms were used to authorize loans or fund movement from customer accounts while others were used by the firm to supervise transactions in order to determine whether or not they were suitable based on the customers’ financial situation.
- His Actions Caused the Firm to Maintain Inaccurate Records and Books: Transamerica Financial Advisors, Inc. limits how much of a customer’s liquid assets may be invested in non-traded REITs, seeing as they are often riskier than other types of investments. In order to get around these limits, Saitowitz allegedly overstated four customers’ net worth making them appear to fit in the firm’s limits when in reality they did not.
- He Made Unsuitable Recommendations: Saitowitz allegedly recommended that four of his customers invest a dangerous percentage of their assets in non-tradeable REITs – in one case, he allegedly recommended that one client, an 82-year old retired clergyman, surrender his fixed annuity and more then funds into a non-tradeable REIT. This action caused the client to incur an $11,455 surrender charge.
- He Participated in a Private Securities Transaction: In 2013, one of Saitowitz’s clients expressed a desire to sell his interested in a non-traded REIT. Saitowitz then allegedly set up another client to buy the first client’s shares for over $46,000 in early 2014. While Saitowitz filled out the necessary forms, FINRA claimed he did not notify or process the transaction through Transamerica Financial Advisors, Inc.
- He Performed Business Using A Personal Email Address: Transamerica Financial Advisors, Inc. requires their registered representatives to conduct securities business via Firm-approves email addresses. Notably, Saitowitz allegedly used an unapproved personal email address to communicate with clients while the firm was performing an internal review of his sales practices.
- He Failed to Report a Judgement and Liens: The IRS and the State of Georgia filed a total of six tax liens against Saitowitz between October of 2010 and November of 2015 totaling approximately $158,425, and had a consent judgement filed against him in October of 2012 totaling about $254,000. He either delayed amending his Form U4 or neglected to amend it at all.
If you lost money investing with former Transamerica Financial Advisors, Inc. and IFS Securities investment adviser and broker Gary Saitowitz, contact the securities fraud attorneys at Meyer Wilson today. Our lawyers have spent nearly two decades providing approximately 1,000 clients with the legal assistance they need, and have secured hundreds of millions of dollars in verdicts and settlements over that time. Every case we accept is handled on a contingency fee basis, so you won’t be required to pay any legal fees unless we help you recover your losses. Call us at one of our offices located around the country to speak with a member of our firm, or fill out our online form to start out with a free case consultation today.