Update on Broker Gary Basralian – Securities Fraud Investigation
According to reports yesterday, broker Gary Basralian, of Springfield, NJ, pleaded guilty in U.S. District Court to one count of wire fraud and one count of investment adviser fraud.
Basralian, 70, admitted to stealing at least $2 million from clients to finance his personal expenses including payments on a BMW and thousands of dollars in credit card bills.
From July 2007 through November 2017, Basralian allegedly defrauded his clients by falsely telling them he would invest their money in securities and other investments. Instead, he purportedly used those funds for his own personal expenditures.
Basralian reportedly wired money from at least one client’s investment account at the firm to various accounts that he controlled and allegedly used the proceeds for his own benefit. When the client asked why the account had diminished in value, Basralian purportedly sent the victim a fake spreadsheet showing that the money was being invested as loans to various companies and would be paid back with interest.
If convicted, Basralian faces 20 years in prison and a $250,000 fine for the wire fraud count and a penalty of five years in prison and a $10,000 fine for the investment adviser fraud count.
The Financial Industry Regulatory Authority (FINRA) reportedly barred Basralian from the securities industry in March 2018 after he allegedly failed to provide testimony regarding FINRA’s investigation.
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.”
Failure to Supervise
The White Law Group continues to investigate potential claims involving the liability that Basralian’s employer may have had 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 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 suffered losses investing with broker Gary Basralian and Royal Alliance you may be able to recover your losses through FINRA Arbitration & Mediation. For 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.