FINRA recently announced that Paul Grover Gomez a registered representative in El Toro, California has been fined $75,000 and suspended from association with any FINRA member in any capacity for three months.
Without admitting or denying the allegations, Gomez consented to the entry of findings that his options recommendations to customers were unsuitable based on their investment objectives, financial situations and needs, including being retired and on fixed incomes. According to the FINRA announcement, the findings further stated that Gomez did not have reasonable grounds for believing that the recommendations to the customers were suitable in light of their financial situations and needs, and did not have a reasonable basis for believing that the customers had the knowledge and experience in financial matters to be reasonably expected to be capable of evaluating the risks of the options transactions that Gomez recommended.
Finally, FINRA’s findings also included that Gomez utilized an uncovered index option combination writing (or selling) strategy in customer accounts and that the strategy purportedly involved selling put and call options on the Standard & Poor’s (S&P) 100 stock index.
The White Law Group is investigating the liability that Gomez’s employers may have for his alleged conduct. To the extent that his employers failed to properly supervise Gomez contributing to clients’ losses, the employers may be held liable for damages in a FINRA arbitration claim.
If you suffered losses investing with Gomez and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 312/238-9650 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on the firm, visit https://www.whitesecuritieslaw.com.