Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Gary Mark Goldberg (CRD # 223919) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into unsuitable recommendations regarding variable annuities.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Goldberg.
Registration Background for Gary Goldberg
Mr. Goldberg first became registered in the securities industry in 1970. He was most recently registered with Montebello, NY based Newbridge Securities Corporation (CRD # 104065) from May 2020 to May 2022. His prior registrations include Bruderman Brothers LLC (CRD # 47957) from March 2015 to October 2019 and Gary Goldberg & Co., Inc. (CRD # 6482) from June 1973 to March 2015.
FINRA’s Allegations Against Gary Goldberg
According to the FINRA Letter of Acceptance, Waiver and Consent (AWC) dated March 9, 2023 (No. 2019064776201), Mr. Goldberg consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “From July 2018 through June 2019, [Mr.] Goldberg made unsuitable recommendations to customers who held both brokerage and advisory accounts”;
- “During the relevant period…. [Mr.] Goldberg recommended that 54 customers who had or were in the process of establishing advisory accounts purchase B-shares of a particular VA in their brokerage accounts”;
- “In particular, he recommended that customers purchase variable annuities (VAs) in their brokerage accounts when nearly identical but lower-cost advisory shares were available to be purchased in their advisory accounts—and then subsequently transfer those positions to the customers’ advisory accounts, causing the customers to unnecessarily pay both higher product costs and advisory fees”;
- “During that time, advisory shares of the VA were available for Goldberg’s customers to purchase”;
- “As a result, the customers were required (and continue to be required) to pay annual advisory fees of 1.875%, as well as annual fees for the VAs that are 0.95 percent higher than if the customers had purchased advisory shares”;
- By virtue of his actions, Goldberg violated FINRA Rule 2111 regarding suitability, FINRA Rule 2330 regarding deferred variable annuities and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Suspends Gary Goldberg from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s March 9, 2023 AWC also indicates that Mr. Goldberg consented to the following sanction(s):
- A 18-month suspension from association with any FINRA member in all capacities;
- A fine in the amount of $25,000.00; and
- Restitution in the amount of $594,590.00 plus interest.
Gary Goldberg Has A Prior History of Securities Industry Customer Complaints
In addition to Gary Goldberg being suspended by FINRA from the securities industry regarding unsuitable recommendations regarding variable annuities, FINRA BrokerCheck for Mr. Goldberg reveals that he has a history of customer complaints and/or customer-initiated arbitrations including but not necessarily limited to the following:
- On July 7, 2008 a customer-initiated arbitration was commenced against Mr. Goldberg regarding alleged actions that occurred while he was associated with Gary Goldberg & Co, Inc. The customer’s allegations included unsuitable investments. The customer further alleged damages in the amount of $50,000.00. On June 10, 2009, the complaint was settled in the amount of $15,000.00.
- On March 19, 2007 a customer-initiated arbitration was commenced against Mr. Goldberg regarding alleged actions that occurred while he was associated with Gary Goldberg & Co, Inc. The customer’s allegations included unsuitable investments with respect to mutual funds, stocks, variable annuities and limited partnerships. On March 24, 2008, the complaint was settled in the amount of $81,000.00 with Mr. Goldberg personally responsible for $54,613.00 of the amount.
- On November 6, 2006 a customer-initiated arbitration was commenced against Mr. Goldberg regarding alleged actions that occurred while he was associated with Gary Goldberg & Co, Inc. The customer’s allegations included unsuitable investments. The customer further alleged damages in the amount of $75,000.00. On December 11, 2007, the complaint was settled in the amount of $19,000.00.
Have You Lost Money with Gary Goldberg
If you or someone you know has or had a brokerage account with Mr. Gary Mark Goldberg and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.