Public records published by the Financial Industry Regulatory Authority (FINRA) on May 30, 2016 indicate that former Ohio-based Triad Advisors broker/adviser Gary Rathbun has been permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public. The securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Rathbun (CRD# 1084721).
Gary Rathbun has spent 27 years in the securities industry and was most recently registered with Triad Advisors in Toledo, Ohio (2009-2014). Previous registrations include Mutual Service Corporation in Toledo, Ohio; Royal Alliance Associates in New York, New York; Integrated Resources Equity Corporation; and New York Variable Contracts Corporation. He is currently not registered with any state or firm.
According to his BrokerCheck report, Gary Rathbun has received one regulatory sanction and resigned from Triad Advisors.
In May 2016, FINRA sanctioned Gary Rathbun following allegations he and another registered representative “participated in the sale of investments in limited liability companies (LLCs) to clients of their registered investment adviser firm, who collectively invested approximately $25.5 million in the LLCs, without providing written notice of their participation to their member firm.” According to FINRA’s complaint, Mr. Rathbun and the other representative “did not affirmatively provide written notice to the firm that they were participating in the sale of investments in the LLCs or seek the firm’s permission to do so” and did not disclose that they were “compensated by some of the LLC’s for their activities and failed to appropriately disclose investments they made personally or on behalf of family members in the LLC’s to their firm.” He was issued a permanent bar from the securities industry.
In 2014, Gary Rathbun was “permitted to resign” from his position at Triad Advisors following allegations he violated firm policy with respect to private securities transactions.
“Private securities transactions” refers to the purchase, solicitation, or sale by a broker of securities not offered by his/her member firm. Such transactions are typically also not included in the firm’s official records. Both FINRA rules and federal securities law forbid selling away: Perhaps the most important regulatory codification with respect to selling away is FINRA Rule 3040, which states that “No person associated with a member shall participate in any manner in a private securities transaction” unless the transaction complies with numerous terms, including written authorization from the member firm. Investment professionals who engage in selling away may be subject to disciplinary action by FINRA or the Securities and Exchange Commission.
If you have lost money investing with Gary Rathbun, call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 without delay. You may be entitled to recoup your losses. We accept all cases on contingency: Fitapelli Kurta only gets paid if and when you collect money. Time to file your claim may be limited, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.