State of New Jersey Penalizes Broker Gary Richard Scheer $750,000 Following Breach of Fiduciary Duty
FINRA issued a regulatory fine for Gary Richard Scheer following allegations of breaching fiduciary duties to clients by recommending and selling unregistered securities tied to Ponzi schemes.
Mr. Scheer is accused of allegedly selling unregistered securities while acting as an agent without registration. According to the regulator, multiple of the investments were ultimately determined to be fraudulent schemes, including Woodbrige and Northridge Holdings. Scheer also sold Future Income Payments (FIP Securities), Pension Income Funding, LLS, Dental Support Plus Franchise, LLC (DSPF LLC), JCS Enterprises, T.B.T.I. Inc., and Gains Equity Management, LLC, among others. Scheer also allegedly omitted to state the risks associated with the investments and failed to conduct a due diligence investigation into the securities he was recommending and selling. Mr. Scheer also allegedly breached his fiduciary duties to clients by failing to disclose conflicts of interest due to the commission he would receive on the investments – he would have made less of a commission on suitable funds.
During a period of approximately eight years from 2010 to 2018, Mr. Scheer recommended and sold unregistered securities in seven different investments to at least 50 clients. Scheer allegedly continued to recommend and sell these securities to clients even after learning that some investments had been tied to a $1.2 billion or $47 million Ponzi scheme. Six of the seven funds were deemed fraudulent.
The New Jersey Bureau of Securities revoked Mr. Scheer’s registration and demanded that he pay a $750,000 penalty following his violation of New Jersey securities laws. Investors who suffered losses due to Scheer’s recommendations may have a right to file a claim to recover their losses.
What Our Clients Say
Below are some of the emails and letters that our clients have sent us.
At a time in our life when we were most vulnerable we lost control of our finances. We fell victim to a broker that took huge commissions and did not disclose that we were not able to access our money. Peter Mougey and his wonderful staff worked with us to make us whole again and got our money released. I cannot say enough about their work ethic, professionalism, and kindness during this stressful time for us. We had a 100% positive conclusion to our case and we strongly recommend Peter and the firm. We can now sleep at night! Fred & Pat H.
My husband and I were very pleased with the work that Peter and his team provided. He was very knowledgeable of the circumstances of our case and kept us informed throughout the process. He is extremely qualified and worked diligently on our behalf. We are positive that this case would not have been resolved in our favor had it not been for Peter's expertise and his passion. He definitely cares about his clients and we sincerely appreciate his efforts. Rachel C.
FRS is a governmental body. FRS retained the services of Peter Mougey of the LP law firm in a multimillion dollar lawsuit involving extremely complex issues. Mr. Mougey quickly mastered the issues and gave advice that was vital in bringing about a successful resolution. Two of the most important features of Mr. Mougey’s representation was his understanding of government and his ability to communicate complicated legal concepts to a 10-member board of trustees in language that was easily understood by all. I did not know Mr. Mougey before FRS retained him and, fortunately, have not experienced circumstances where the system would need his services again. However, if needed, I would have no hesitation in retaining his services again. Please let me know if you need any additional information or assistance. Steven S.
Edison's famous adage can't ever be ignored of course: 1 part inspiration and 99 parts perspiration. However the two attitudes must be present indissolubly--both are essential--if results are to be obtained. Peter Mougey’s group is aware of such a requirement, they work very hard at the latter, and the former comes easily to them, a rare combination anywhere to be found indeed. Raphael B.
I would like to express my sincere gratitude to Peter Mougey and your entire team on behalf of my family for the amazing job done during your representation. From day one I received kindness, rapid responses to all of my questions, with polite and patient encounters with all of your staff assistants. You are the best- and I will be eternally grateful to you and your entire team. Michelle E.