US Attorney Charges Gary Basralian with fraud after FINRA bars him.
According to the US Attorney’s office, former New Jersey broker Gary Basralian was arrested yesterday for allegedly stealing more than $2.1 million from two clients in order to pay for personal expenses.
Basralian, 70, is charged by complaint with two counts of wire fraud and one count of investment adviser fraud.
According to the complaint, from August 2007 through November 2017, Basralian, while working as an investment adviser, allegedly misappropriated at least $738,000 from the first client and at least $1.4 million from a second client.
The complaint alleges that Basralian claimed he would invest the funds in brokerage accounts or in real estate and high-interest loans, and manage them on behalf of the victims. Instead, Basralian allegedly used the clients’ money for personal expenses, including BMW car payments and thousands of dollars in credit card bills.
According to his FINRA BrokerCheck report, Basralian was registered with Royal Alliance Associates in Maplewood, NJ from January 1989 until he was permitted to resign in December 2017 due to a customer complaint alleging that Basralian “invested a substantial portion of (the clients) funds in a number of suspect investments,” that the advisor has failed to disclose tax liens, and that he “misappropriated monies that belonged to the client.”
FINRA reportedly barred Basralian from the securities industry in March 2018 after he allegedly failed to provide testimony regarding FINRA’s investigation.
Investigating Potential Claims
The White Law Group continues to investigate the liability that Basralian’s employer may have for failing to properly supervising him.
Brokerage firms are required to properly supervise their advisors. They must ensure that those advisors are complying with applicable FINRA rules and regulations. If it can be demonstrated that Gary Basralian’s former employers failed to properly supervise him, the firm may be held responsible for the losses in a FINRA arbitration claim.
If you are concerned about your investments with Gary Basralian and would like a free consultation to discuss your litigation options, please call The White Law Group at 1-888-637-5510.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.