Ex-Royal Alliance Broker Stole Money From Older Women With Disabilities
If you suffered losses while working with former Royal Alliance Associates broker, Gary Basralian, our broker fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) want to talk to you.
Gary Basralian, whom the Financial Industry Regulatory Authority (FINRA) barred in 2018, is currently in prison for fraud, including bilking older women who suffered from disabilities. Recently, Royal Alliance, an Advisor Group firm, agreed to pay $250K to settle a related regulatory case brought by the New Jersey Bureau of Securities for not properly supervising Basralian.
Gary Basralian Pleaded Guilty To Investment Advisor Fraud
In the criminal case against Basralian, he was sentenced to 70 months in prison. Gary Basralian pleaded guilty to investment advisor fraud and wire fraud, including misappropriating investor money — at least $1.4M — most of which he used on his own expenses.
This included paying card bills, as well as making BMW and home mortgage payments. Basralian also is accused of making unauthorized wire transfers from customer accounts.
Widow Wins FINRA Case Against Basralian and Royal Alliance
One of his primary victims was a 54-year-old widow with a brain injury. A year ago, a FINRA arbitration panel ordered Basralian and Royal Alliance to pay her $2.1M plus $500K for legal fees for a collective total of $4.2M. Royal Alliance was accused by the arbitration panel of failing to properly supervise Basralian.
10 Senior Investor Women Defrauded
The ex-Royal Alliance broker allegedly promised his victims that he would invest their money through their brokerage accounts or in high-interest loans or real estate. According to prosecutors, the ex-Royal Alliance broker defrauded 10 women, all of them either widowed or single and who were in their seventies and eighties.
His BrokerCheck record notes that he worked 43 years in the industry, 28 of those years as a Royal Alliance broker. There are four customer disputes recorded in his files.
Royal Alliance Accused of Inadequate Supervision
In New Jersey’s case against Royal Alliance, the state securities regulator also blamed Royal Alliance’s negligent supervision of Basralian as part of what enabled him to spend years defrauding the firm’s customers.
Of the $250K payment that the broker-dealer will give the state, $190K is a penalty, $30K is for costs, and the rest will go toward the New Jersey Securities Bureau’s program for investor education. Royal Alliance also must modify its written procedures and policies to prevent similar misconduct by its brokers and advisors moving forward.
Brokerage Firm Negligence
Broker-dealers can be held liable for inadequate supervision if their failure to properly oversee their registered representatives allows investor fraud to occur. Already, Royal Alliance has had to pay approximately $5M to customers that were bilked by Basralian.
At SSEK Law Firm, our broker fraud attorneys can help you determine whether you have grounds for a case. Contact us today if Gary Basralian or another Royal Alliance advisor was your broker and you suspect fraud may have been a factor in you sustaining investment losses.