Ever heard the story of an individual signing documents on behalf of another without permission? Can you imagine the fallout of such an incident in the financial services sector? It sounds like a tale from a thrilling crime novel, right? Well, believe it or not, such a story unfolded recently in Hattiesburg, Mississippi. Our protagonist, or shall we say, antagonist, is financial advisor Trey Garraway, who found himself in the eye of the storm.
Allegations Surfaced
Garraway (CRD# 7132872), once a broker at Thrivent Investment Management, found himself suspended due to alleged rule violations. Not just confined within the domain of negligence, Garraway was accused of crossing ethical boundaries too. How did this come to light, you may wonder? The Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission’s diligent background checks flagged the ex-broker, now an investment advisor with Simplified Wealth Management.
The Charges, Allegations, and Fallout
Table of Contents
- The Unauthorized e-Signatures – The storm hit when Garraway’s BrokerCheck report revealed a blot. The recent FINRA sanction against him surfaced in July 2023, branding Garraway as the alleged forger of about 101 electronic customer signatures. These were not just any documents, but important forms associated with insurance and securities products, with the customers oblivious.
- The Regulator’s Iron Fist – The revelation had repercussions, with FINRA asserting that Garraway’s actions violated two crucial rules. Rule 2010 – which stands for the maintenance of high standards of commercial honor and equitable principles of trade. And Rule 4511 – which demands the maintenance of accurate firm records. The judgment? A six-month suspension and a fine of $5,000.
- The Termination Hammer – Garraway’s Report had another surprise – his termination from Thrivent Investment Management in December 2021. Evidently, due to the same allegations – failing “to collect authentic client electronic signatures on certain client documents.
In his defense, Garraway stated that his intention was to alleviate some clients’ issues during the pandemic’s tech shift, and hence, sent the documents requiring client signatures to himself. He also accepted full responsibility for his violation of the company policy.
Professional Background
Contrary to this controversy, Garraway’s previous reports showed a professional with three years of securities industry experience. After serving with Thrivent Investment Management based in Virginia from 2019 to 2022, he assumed his current role at Simplified Wealth Management in his hometown of Hattiesburg, Mississippi. His credentials include passing four securities industry qualifying exams – the SIE, Series 6TO, Series 63, and Series 65, and maintaining his license in Mississippi.
Regardless of the outcome for Garraway, it must serve as a reminder to us all. High transparency, ethics, and customer service standards must remain at the heart of financial industry practices. So, have you been at the receiving end of similar situations? We at Haselkorn & Thibaut are here to help.
If you’ve experienced investment losses, reach out to us at 1-800-856-3352. Let Haselkorn & Thibaut bring you the justice you deserve as we bring our rich experience representing investors across the US against financial advisors and investment firms. And we promise all our consultations are both free and confidential.
