Gary Gross, an Orthodox Jewish broker who allegedly preyed on elderly members of his own Florida congregation, has been charged with fraud by the SEC for, among other things, selling his clients unsuitable investments.
Gross’ alleged misdeeds, as well as the challenges attorneys and regulators face in keeping less-than- savory brokers out of the industry, were covered by Registered Rep. in our April cover story, The Failure Chain. The SEC complaint alleges that Gross raked in $700,000 in commissions while his clients sustained $2.7 million in losses. To date, Gross has been the subject of 38 customer disputes, resulting in nearly $5 million in payments to customers by his former employing firms.
SEC Chairman Christopher Cox used the filing of the complaint today to kick off the SEC’s third annual Senior Summit in Washington, D.C.