Investigation of Royal Alliance Associates, Inc. Financial Advisor Gary Basralian
Posted on Wednesday, May 2nd, 2018 at 6:02 pm
Erez Law is currently investigating former Royal Alliance Associates, Inc. broker Gary Basralian (CRD# 14385) for unsuitable investment recommendations. Basralian was registered with Royal Alliance Associates, Inc. in Maplewood, New Jersey from 1989 to December 2017, when he was terminated regarding, “A complaint was received alleging that the advisor ‘Invested a substantial portion of (the clients) funds in a number of suspect investments,’ that the advisor had failed to disclose tax liens, and that he ‘Misappropriated monies that belonged to the client’.”
In April 2019, FINRA indefinitely suspended Basralian after he failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.
In January 2019, a former client of Royal Alliance Associates, In won an award in a FINRA arbitration for compensatory damages for $2,113,665, as well as $15,277.55 in cost, $500,000 in attorneys’ fees and $1,200 for the non-refundable filing fee for losses sustained from investment losses due to misappropriated funds. The investors were clients of Basralian.
The causes of action included conversion, negligent supervision, violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), common law fraud, breach of contract, conversion, and violation of the New Hampshire Securities Act.
In May 2018, the New Jersey Bureau of Securities revoked Basralian’s registration regarding allegations: Basralian is the subject of an order of a self-regulatory organization expelling him from a self-regulatory organization.
In March 2018, FINRA barred Basralian after he consented to the sanction and to the entry of findings that he failed to provide documents and information as requested by FINRA in connection with an investigation into the circumstances of his resignation from his member firm. The findings stated that the firm had filed a Form U5 terminating Basralian’s registrations and reporting that he “resigned after customer allegation of fraud and breach of contract related to investments away from the firm.”
Basralian has been the subject of five customer complaints between 1997 and 2018, one of which was denied, according to his CRD report:
August 2018. “Fraud and breach of contract related to outside investments.” The case was settled for $155,000.
April 2018. “Fraud and breach of contract related to outside investments.” The complaint is currently pending.
December 2017. “Basralian was named in a customer complaint that asserted the following causes of action: negligent supervision, violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), common law fraud, breach of contract, conversion, and violation of the New Hampshire Securities Act.” The customer was awarded $4,518,488 in damages. The complaint was regarding various securities.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Royal Alliance Associates, Inc. may be liable for investment or other losses suffered by Basralian’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.