Kara Gagnon Barred by State of Connecticut and FINRA

Kara Gagnon (CRD #: 4574455), a broker formerly registered with Global Atlantic Distributors, has been barred by both FINRA and the State of Connecticut, according to her BrokerCheck record, accessed on April 18, 2023. If you have questions about her alleged conduct as a broker, keep reading.

Bar by State of Connecticut

On March 9, 2023, the State of Connecticut Department of Banking, Securities and Business Investments Division filed a consent order alleging that Kara Gagnon failed to disclose an outside business activity on her Uniform Application for Securities Industry Registration or Transfer (Form U4).

The consent order alleged that, as a broker with Global Atlantic Distributors, Kara Gagnon engaged in dishonest and unethical business practices under Sections 36b-31-14e, 36b-15(a)(2)(H), and 36b-31-15b(c) of the Connecticut Uniform Securities Act by participating in an outside business activity without notifying her firm.

Further, Kara Gagnon allegedly used her firm email account to communicate with a third party about a business venture outside the firm and acted as an intermediary between that third party and several individuals, including by facilitating wire transfers. This business venture was allegedly a scam.

Connecticut Uniform Securities Act

Section 36b-31-14e of the Connecticut Uniform Securities Act requires that brokers and investment advisers promptly amend their application for registration when any information within it becomes inaccurate or incomplete.

Section 36b-15(a)(2)(H) allows the state to revoke, suspend, deny, or otherwise restrict the registration of brokers and investment advisers if they are found to have engaged in dishonest, unethical, or fraudulent practices in the securities, investment, insurance, and other finance-related businesses.

Section 36b-31-15b(c) specifies that the commissioner can consider whether potentially unethical or dishonest business practices are prohibited by self-regulatory organizations like FINRA, federal regulations, or the rules of national security exchanges.

Sanctions

The State of Connecticut ordered Kara Gagnon to cease and desist from violations of the Connecticut Uniform Securities Act.

She was also permanently barred from associating with broker-dealers and investment advisers and from acting as a broker or investment adviser agent. This bar took effect on March 9, 2023.

Kara Gagnon allegedly also provided evidence of inability to pay the $10,000 fine that would have been imposed. Instead, the fine will be applied in three years, at which point it will be waived if she provides evidence of further inability to pay.

What are Blue Sky Laws?

Blue sky laws are state securities regulations that give investors an additional layer of protection against fraud. They generally also describe which types of investments must register with the state securities board.

Bar by FINRA

On May 26, 2022, Kara Gagnon was suspended by FINRA for allegedly failing to respond to requests for information. This suspension converted to a permanent bar on August 29, 2022.

FINRA Rule 9552

FINRA Rule 9552 penalizes members who fail to provide documents, information, or testimony requested by FINRA with a suspension. Members have the opportunity to request an end to their suspension within three months of its imposition, after which it becomes a permanent bar.

Resignation from Global Atlantic Distributors

On February 12, 2021, Kara Gagnon was permitted to resign from Global Atlantic Distributors following a mediation request from FINRA alleging that she engaged in fraud unrelated to her duties or the firm.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Background Information

Kara Gagnon has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• Series 99TO – Operations Professional Examination
• SIE – Securities Industry Essentials Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination
• Series 26 – Investment Company Products/Variable Contracts Principal Examination

In the past, she worked for the following firms:

• Global Atlantic Distributors (CRD#:8326)
• MetLife Investors Distribution Company (CRD#:107622)
• New England Securities (CRD#:615)
• Tower Square Securities (CRD#:833)

Kurta Law Can Help

If you worked with Kara Gagnon and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.