FINRA’s Department of Enforcement investigated Gray and alleged he misappropriated approximately $138,000 from two elderly customers that was intended for investment purposes. According to FINRA, Gray convinced an elderly couple to transfer funds from their Edward Jones account to their personal banking account held away from the firm. Gray also requested blank checks from the couple to pay for investment fees. However, FINRA alleged Gray did not use the blank checks for this purpose, but rather, Gray proceeded to draft the checks payable to himself or business and then use the funds for his own personal use.
Based upon the foregoing misconduct, FINRA alleged Gray violated two FINRA Rules, namely FINRA Rule 2150(a) and 2010. FINRA Rule 2150(a) provides that “no member or person associated with a member shall make improper use of a customer’s securities or funds.” Further, “[i]t is well established that conversion violates the ‘high standards of commercial honor and just and equitable principles of trade’ required by FINRA Rule 2010.”
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment damages or are the victim of investment fraud from dealing with Gray, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation.