Bradley Gardner Barred by FINRA
Trust, proficiency, and ethical conduct are the cornerstones of the financial advisory industry. When these pillars are compromised by financial advisor misconduct, leading to significant investment losses, the consequences can be devastating for investors. The case of Bradley Gardner, who was barred by FINRA following serious customer complaints, underscores the need for investors to seek skilled legal assistance in situations such as this. In this article, we explore the details of Gardner’s misconduct, the allegations against him—including unsuitable investment recommendations, misrepresentations, and churning—and how investors can seek recourse.
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Understanding FINRA Bars and Financial Advisor Misconduct
What Does It Mean to Be Barred by FINRA?
When a financial advisor is barred from the Financial Industry Regulatory Authority (FINRA), it represents the most severe disciplinary action the regulatory body can impose. This means the individual is permanently prohibited from associating with any FINRA member firm in any capacity. Essentially, their ability to function as a broker, financial advisor, or in any role requiring FINRA registration is terminated. To put it in perspective, it’s akin to a doctor losing their medical license—they can no longer legally practice their profession, thereby preventing further potential harm to patients or, in the case of brokers, further investment losses to clients.
This action is taken to safeguard the investing public from individuals deemed untrustworthy or incapable of handling clients’ assets responsibly.
Bradley Gardner’s Misconduct and FINRA Findings
Bradley Gardner’s case is a stark example of financial advisor misconduct. FINRA’s investigation revealed that Gardner engaged in egregious actions, including converting an elderly client’s funds for his personal use. He misrepresented the character of the payment, persuading this client to write him a check under the guise of prepaying advisory fees at a discount. Instead of applying the funds to the client’s account, Gardner used the money for personal expenses.
This blatant breach of trust led FINRA to bar him in June 2018 following serious customer complaints. Imagine entrusting your life savings to someone, only to find out they’ve been using your money to fund their own lifestyle. For many victims, especially vulnerable elderly clients, this isn’t just a financial blow—it’s an emotional one as well, often accompanied by considerable investment losses.
Customer Complaints and Misrepresentation
Analyzing Customer Complaints Against Bradley Gardner
The customer complaints lodged against Gardner reveal a troubling pattern of misconduct over several years, resulting in significant investment losses for his clients. Between 2002 and 2018, he was the subject of three major complaints, with two leading to significant financial settlements. In the most recent complaint filed in March 2018, Gardner is accused of making unsuitable investment recommendations between 2006 and 2008—a case that remains pending.
A prior complaint from October 2017 resulted in a $110,000 settlement and included accusations of:
- Churning (excessive trading)
- Unsuitable and over-concentrated investment recommendations
- Excessive fees
- Misrepresented account values
These allegations span nearly a decade, and the resulting investment losses suggest that Gardner’s actions were not isolated incidents but part of a prolonged pattern of unethical behavior.
LPL Financial’s Liability and Broker Supervision
Gardner’s misconduct also raises serious questions about LPL Financial’s liability in failing to supervise its broker adequately, especially in light of the customer complaints lodged against him. As Gardner’s employer from 2012 to 2017, LPL Financial LLC may be responsible for the investment losses suffered by his clients during that period. FINRA rules require member firms to implement and maintain a system to supervise the activities of their brokers to ensure compliance with applicable securities laws and regulations, thereby preventing financial advisor misconduct.
When firms like LPL Financial fail in this duty, they can be held liable for negligence in supervision. For investors who have suffered losses due to such failures, it’s important to know that they may have legal recourse not only against the individual advisor but also against the employing firm. If you believe you’ve been a victim of inadequate broker supervision, consulting with a firm experienced in securities litigation, like Meyer Wilson, can help you understand your rights and options.
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Conclusion
The case of Bradley Gardner is a sobering example of the risks investors face when advisors breach their fiduciary duties. It highlights the necessity of rigorous regulatory oversight and the need for skilled legal assistance when misconduct occurs. If you suspect that you’ve been the victim of financial advisor misconduct, it’s crucial to act promptly. Document your concerns, review your account statements carefully, and consider seeking legal advice to protect your interests. At Meyer Wilson, we are committed to helping investors navigate these challenging situations and work towards recovering their investment losses.
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Frequently Asked Questions
What Is a CRD Number and How Is It Used in FINRA?
A CRD (Central Registration Depository) number is a unique identifier assigned by FINRA to every registered broker and brokerage firm. This number allows regulators to track the professional’s registration status, employment history, and any disciplinary actions. If you have concerns about a financial advisor’s conduct, tools like FINRA’s BrokerCheck can provide important background information that may assist in evaluating your situation.
What Is Churning in Finance and Its Consequences?
Churning refers to the unethical practice where a broker excessively trades securities in a client’s account primarily to generate commissions, rather than to advance the client’s investment objectives. This can lead to significant financial losses for the client due to unnecessary fees and potential tax implications. Brokers and firms found guilty of churning can face severe penalties, including:
- Fines
- Suspension or revocation of licenses
- Legal liability for the client’s losses.
Proper broker supervision is crucial to prevent such misconduct and protect clients from significant investment losses.
How Do I Address Investment Losses from Financial Advisor Misconduct?
If you’ve suffered investment losses due to financial advisor misconduct, it’s important to take action promptly. Contacting an experienced securities litigation attorney can help you understand your rights and potential remedies. At Meyer Wilson, we can evaluate your situation, determine if you have a viable claim, and guide you through the process of seeking recovery.
Recovering Losses Caused by Investment Misconduct.
