Gary Pevey: FINRA Suspends Former Mutual Securities Advisor
A disciplinary action taken by the Financial Industry Regulatory Authority against former Sacramento, California broker and investment advisor Gary Pevey (CRD#) suspended him over allegations he participated in unapproved private securities transactions. A former representative of Mutual Securities, Pevey was suspended for 10 days and fined $5,000.
According to a Letter of Acceptance, Waiver and Consent () dated January 2019, Gary Pevey solicited investors to make purchases of Woodbridge Group of Companies promissory notes. FINRA describes Woodbridge Group of Companies as “a purported real estate investment fund.” Pevey allegedly sold about $1.1 million’s worth of Woodbridge notes to a total of 15 investors, five of these investors were customers of Mutual Securities, according to FINRA. In connection with these promissory note investments, FINRA goes on to state, Pevey received commissions totaling $40,027.
Mutual Securities’ written supervisory procedures at the time, according to FINRA, stated that firm representatives must “request and obtain approval” from the firm before they participate in private securities transactions, including private securities transactions constituting promissory note investments. In spite of this requirement, according to FINRA, Pevey declined to provide the firm with advance notice that he would be engaging in the transactions, and additionally did not receive permission from the firm to do so. FINRA found these activities to constitute violations of FINRA Rules 3280 and 2010. As a result of the foregoing alleged conduct, he was suspended from association with any FINRA member firm in all capacities for twelve months. He was also ordered to pay a fine of $10,000 as well as disgorgement of commissions he received.
Gary Pevey’s disclosure records also list two settled or pending customer complaints against him. One such complaint, filed in 2018, alleged that as a representative of Mutual Securities, Pevey sold high-risk and fraudulent promissory note investments; it reached a settlement of $134,893.85. A pending complaint, filed in 2019, details similar allegations concerning his conduct as a Mutual Securities representative. The complaint alleges damages of $134,009.35.
Gary Pevey is not currently registered as a broker or investment advisor. His employment history includes Mutual Securities in Sacramento, California, NFP Advisor Services, and NYLife Securities. He currently holds no state licenses and has passed five securities industry qualification examinations.