Investigation: Gary Saitowitz of Transamerica Financial Advisors & IFS Securities

The Sonn Law Group is investigating claims related to broker Gary Saitowitz (FINRA CRD#: 4238395). Saitowitz was recently suspended by FINRA for numerous violations including making unsuitable recommendations, participating in private securities transactions, and having customers sign incomplete and blank forms.

If you have complaints regarding former broker Gary Saitowitz, Sonn Law Group is interested in hearing from you to discuss possible legal remedies. Call us now at 305.912.3000 or fill out our short contact form to speak with a legal representative from our firm about your experience with Gary Saitowitz.

Here are the complete details of FINRA’s disciplinary actions against Gary Saitowitz on its website:

Initiated By – FINRA

Allegations
Without admitting or denying the findings, Saitowitz consented to the sanctions and to the entry of findings that he had customers sign blank and incomplete brokerage forms, which he placed in customer files maintained as books and records at his member firm.

The findings stated that some of the pre-signed forms authorized fund movement or loans from customer accounts, while others related to customer financial information, used by the firm to supervise whether transactions solicited by Saitowitz were suitable for customers. Maintaining these pre-signed forms enhanced the risk that customers would be placed in unsuitable investments or subject to unauthorized account activity.

The findings also stated that Saitowitz also caused the firm to maintain inaccurate books and records in connection with sales of non-traded REITs. The firm imposed limits on the amount of a customer’s liquid assets that could be invested in non-traded REITs. To circumvent the firm’s concentration limits, Saitowitz maintained records overstating the liquid net worth of certain customers in connection with sales of non-traded REITs. The findings also included that Saitowitz recommended that four customers, including a senior citizen, allocate unsuitable amounts of their assets to non-traded REITs.

Based on Saitowitz’s recommendations, these customers overly concentrated their assets in non-traded REITs, and, as a result, their asset allocations were unsuitable to their investment objectives and risk tolerances. FINRA found that Saitowitz participated in a private securities transaction involving the purchase and sale of approximately $46,600 in a non-traded REIT without notifying the firm. FINRA also found that Saitowitz used personal email addresses to conduct securities business, in contravention of the firm’s policies and procedures.

Despite being instructed by the firm to cease communicating with customers pending the firm’s internal review of his sales practices, Saitowitz continued to communicate with customers using his personal email addresses, which were not subject to monitoring by the firm. In addition, FINRA determined that Saitowitz willfully failed to report a judgment and a tax lien, and willfully failed to timely report five tax liens.

Resolution
Acceptance, Waiver & Consent(AWC)

Sanctions
Civil and Administrative Penalty(ies)/Fine(s)

Amount
$10,000.00

Sanctions
Restitution

Amount
$11,455.00

Sanctions
Suspension

Duration
18 months

Sanctions
Saitowitz understands that this settlement includes a finding that he willfully omitted to state material facts on a Form U4, and that under Section 3(a)(39)(F) of the Securities Exchange Act of 1934 and Article III, Section 4 of FINRA’s By-Laws, these omissions makes him subject to a statutory disqualification with respect to association with a member.

Have you worked with Gary Saitowitz? If so, we are interested in discussing possible legal remedies with you. Call us now at 305.912.3000 or fill out our short contact form to speak with a legal representative from our firm