Financial advisor Ray Don Gallette has faced multiple claims related to unsuitable investment recommendations, resulting in significant financial losses for his clients. In this blog, we will review the allegations made against Gallette, the investments involved, and the legal outcomes tied to his time at Coastal Equities, Inc.
If you or someone you know has been impacted by Ray Gallette or another broker, don’t hesitate to reach out to Meyer Wilson today. Our attorneys are experienced in broker misconduct cases and will help to guide you through the process with a free consultation.
Understanding the Allegations Against Ray Don Gallette
Ray Don Gallette (CRD#: 3041923) worked at Coastal Equities, Inc. from January 4, 2013, to January 29, 2020. Once he left, he became the subject of multiple arbitration claims involving alleged unsuitable investment recommendations.
Key allegations include:
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Unsuitable Alternative Investments: On October 28, 2024, a client filed a dispute alleging that Gallette recommended inappropriate alternative investments, seeking $239,000 in damages.
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Sales Practice Violations: Another client filed on March 29, 2024, contesting Gallette’s sales practices tied to alternative investments.
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Pattern of Misconduct: Since 2020, Ray Gallette has settled for just under $1.5 million, with over $300,000 in damaged sought in 2024 alone and 2 cases still pending.
The nature of these claims shows that Gallette’s investment advice may not have aligned with clients’ financial goals or risk tolerance.
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Key Claims and Their Impact on Investors
Several claims against Gallette have been large sums of money, reflecting a broader pattern of issues with his investment recommendations. The claims indicate substantial concerns among former clients.
Key cases include:
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August 21, 2020: Settled for $463,000 for allegations that Coastal Equities failed to perform due diligence when Ray Gallette made unsuitable investments.
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September 1, 2020: $500,000 in damages sought for allegations that Coastal Equities failed to perform due diligence when Ray Gallette made unsuitable investments.
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October 13, 2022: $500,000 in damages sought for allegations that Coastal Equities failed to perform due diligence when Ray Gallette made unsuitable investments.
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July 14, 2023: $370,000 in damages sought for allegations of unsuitable direct investments.
Types of Allegations Made Against Gallette
The complaints cover a variety of misconduct issues:
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Unsuitable Investment Recommendations: Involving high-risk products often inappropriate for many investors.
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Misrepresentation of Investment Risks: Misleading clients about the safety or potential returns of investments can result in significant losses and legal action.
This pattern of behavior points to serious breaches of responsibility toward his clients.
Coastal Equities Inc. and the Broader Legal Implications
As Gallette’s employer during many of these disputed recommendations, Coastal Equities, Inc. has been drawn into multiple arbitration claims and has paid substantial settlements. These outcomes not only impact the firm’s financial standing but also raise questions about its supervision of financial advisors.
Financial Repercussions for Coastal Equities Inc.
The settlements and pending claims tied to Gallette have led to major payouts:
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Total Settlements Paid: More than $1.4 million across multiple arbitration claims.
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Potential Ongoing Liability: Pending arbitration claims could result in additional financial consequences for the firm and/or Gallette.
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Supervisory Failures: Brokerage firms have a duty to supervise their representatives and detect misconduct early. The complaints against Gallette suggest Coastal Equities may have failed in this essential responsibility.
Investors harmed by Gallette’s recommendations could have a claim against the firm as well, not just the individual advisor.
Our lawyers are nationwide leaders in investment fraud cases.
Meyer Wilson Stands Up for Victims of Broker Misconduct
The cases against Ray Don Gallette show the real risks investors face when financial advisors recommend unsuitable investments without proper research or disclosure.
If you or someone you know has suffered losses due to the actions of brokers like Ray Gallette, the experienced attorneys at Meyer Wilson are here to help. With more than 20 years in the industry and over $350 million recovered for our clients, our focus on investment fraud and securities litigation has helped many investors recover their losses. Contact us today for a free consultation to discuss your case and learn how we can assist you in protecting your financial interests.
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Frequently Asked Questions
What are the main allegations against Ray Don Gallette?
Gallette has been accused of making unsuitable investment recommendations, failing practice due diligence, and misrepresenting investment risks to clients.
What kinds of investments were involved in these claims?
Most allegations involve alternative investments, direct investments, and real estate securities—products that can carry significant risks if not properly vetted.
What is the total compensation paid in these cases?
Since 2020, the settlements connected to Gallette’s conduct exceed $1.4 million, with additional claims still pending.
Recovering Losses Caused by Investment Misconduct.