Posted On: August 30, 2009 by Blum Law Group

Stockbroker ordered to pay $7 million securities arbitration judgment

Blum Law Group and its co-counsel have obtained one of the single largest arbitration awards against an individual financial advisor.

The award was against a former Boca Raton stockbroker who was ordered to pay a $7 million arbitration award — including $4 million in punitive damages — by a FINRA arbitration board.

The FINRA arbitrators found Gary J. Gross made false representations and didn’t tell customers about the risks and suitability of securities he bought for them while working for Axiom Capital Management and UBS. The investments included private placements, mutual funds and low-priced securities.

Many of Gross’ customers were elderly and lost their life savings. Gross preyed on members of his community and continues to live in the same home valued in excess of several million dollars.

The FINRA award found Gross fabricated values while generating commissions from frequent trades on customer accounts and engaged in unauthorized trading and other sales practice violations.

Last yar, Gross consented in a Securities and Exchange Commission civil case to the entry of a permanent injunction that barred him from working in the securities industry until all FINRA arbitration awards against him are concluded.

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