Ray Gallette Allegedly Recommended Unsuitable Investments

Ray Gallette (CRD #: 3041923), a broker formerly registered with Coastal Equities, is the subject of a pending dispute, according to his BrokerCheck record, accessed on January 10, 2023. Read on if you want to know more about his alleged conduct as a broker.

Investor Disputes

On October 13, 2022, an investor alleged that Ray Gallette made unsuitable investment recommendations. The client seeks $500,000 in this pending dispute.

Several investors filed two disputes in 2020 alleging that Coastal Equities failed to conduct adequate due diligence on unsuitable investments recommended by Ray Gallette during a collective time frame of 2013-2020. The clients received settlements collectively totaling approximately $622,000.

FINRA Rule 2111 and Regulation Best Interest

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must use the information in an investor’s profile, such as their risk tolerance, age, and tax status when making recommendations.

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

Background Information

Ray Gallette has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination

In the past, he worked for the following firms:

• Coastal Equities (CRD#:23769)
• Sterling Enterprises Group (CRD#:44915)
• Richfield Orion International (CRD#:24433)
• Okoboji Financial Services (CRD#:33727)
• Peak Securities (CRD#:107907)
• Brokers International Financial Services (CRD#:139627)
• InterSecurities (CRD#:16164)
• Multi-Financial Securities Corporation (CRD#:10299)
• Packerland Brokerage Services (CRD#:37031)
• Linsco/Private Ledger Corporation (CRD#:6413)
• Pruco Securities (CRD#:5685)

Kurta Law Can Help

If you worked with Ray Gallette 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.