Did you lose money investing with Mason Gann (CRD# 4030936)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Mason Gann. If you suffered losses investing with Mason Gann, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
As of May 24, 2020, Mason Gann’s FINRA BrokerCheck Report contains the following:
SUSPENDED: FINRA has suspended this individual from acting as a broker. Please see the detailed report for more information
Disclosure Events
4 Customer Dispute(s)
2 Regulatory Event(s)
1 Employment Separation After Allegations
1 Judgment(s)/Lien(s)
UPDATE 1/27/2020: Mason Wayne Gann (CRD #4030936, Dallas, Texas) January 27, 2020 – An AWC was issued in which Gann was suspended from association with any FINRA member in all capacities for three months. In light of Gann’s financial status, no monetary sanction has been imposed. Without admitting or denying the findings, Gann consented to the sanction and to the entry of findings that he recommended and effected a risky options-trading strategy in the account of a retiree and senior investor who had limited income, modest retirement savings and minimal investment knowledge. The findings stated that the customer’s account value was approximately $205,000 when he opened his Individual Retirement Account (IRA) with Gann’s member firm. Since retiring, the customer had taken monthly withdrawals from his IRA to pay for current expenses, had occasionally withdrawn larger amounts to pay other expenses and informed Gann that he intended to continue withdrawing on a monthly basis indefinitely. The customer’s account holdings did not produce enough income or gains to offset his withdrawals and the value of the account had declined. Continuing withdrawals at the same level was likely unsuitable for the long term, and Gann exacerbated the problem by recommending that the customer begin trading options, which Gann conceived of as a way to generate more income in the account. Gann lacked a reasonable basis for believing that his options recommendations were suitable for the customer, given what he knew about the customer’s investment profile. Although several of the options contracts Gann recommended were profitable, the customer lost more than $12,500 as a direct result of the unsuitable options strategy that Gann recommended to him and effected on his behalf. The combined effect of investment losses and steady withdrawals had reduced the customer’s account balance to below $20,000. The suspension is in effect from February 3, 2020, through May 2, 2020. (FINRA Case # 2018057425201)
Current and Previous Registrations
06/21/2012 – 02/12/2018 BERTHEL, FISHER & COMPANY FINANCIAL SERVICES, INC. (CRD#:13609) DALLAS, TX
12/10/2004 – 06/26/2012 MILKIE/FERGUSON INVESTMENTS, INC. (CRD#:17606) DALLAS, TX
10/11/1999 – 12/13/2004 WACHOVIA SECURITIES, LLC (CRD#:19616) ST. LOUIS, MO
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires broker’s to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokers and the brokerage firms they work for that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing with Mason Gann and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
