Stuart Jeffery Named in Pending SEC Complaint

Stuart Jeffery (CRD #: 5241790), a broker registered with Crito Capital, is involved in a pending SEC complaint, according to his BrokerCheck record, accessed on February 2, 2023. Keep reading to learn more about his alleged conduct as a broker.

Pending SEC Complaint

On November 17, 2022, the Securities and Exchange Commission filed a complaint against GEL Direct Trust, its managing trustee GEL Direct, LLC, and their co-owners and control persons Stuart Jeffery and Jeffrey Galvani. The complaint alleges that the defendants sold penny stocks and other securities for GEL Direct Trust customers while lacking registration as brokers or association with a registered broker.

According to the SEC, GEL Direct or GEL Direct Trust have allegedly not registered with the SEC as broker-dealers. The SEC alleges that, despite this, GEL Direct Trust engaged in the following business practices as a broker:

• Taking possession of clients’ penny stocks
• Finding executing brokers to sell these stocks in the market and directing them in the completion of these sales
• Facilitating the settlement of these trades and the disbursement of proceeds to clients

The SEC further alleges that Stuart Jeffery and Jeffrey Galvani used this business model to execute over 19,000 trades in more than 300 billion shares of stock offered by more than 400 issuers on behalf of approximately 60 of the GEL entities’ clients. These trades allegedly generated over $1.2 billion in proceeds for their clients and more than $12.4 million in compensation for the GEL entities.

The SEC alleges that the defendants violated Section 15(a) of the Securities Exchange Act of 1934 and that Stuart Jeffery and Jeffrey Galvani, as control persons of the GEL entities, are also liable for those entities’ violations of Section 15(a).

This complaint is currently pending.

Securities Exchange Act of 1934

Section 15(a) of the Securities Exchange Act of 1934 prohibits unregistered brokers and dealers from engaging in or inducing the purchase or sale of securities.

Background Information

Stuart Jeffery has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Stuart Jeffery is a registered broker in New York.

He has also worked for the following firms:

• Aeon Capital (CRD#:164004)
• Laidlaw & Company (UK) (CRD#:119037)
• National Securities Corporation (CRD#:7569)
• First Standard Financial Company (CRD#:168340)
• Rothschild Lieberman (CRD#:10030)
• WestPark Capital (CRD#:39914)
• Corinthian Partners (CRD#:38912)
• Paulson Investment Company (CRD#:5670)
• John Thomas Financial (CRD#:40982)
• Rockwell Global Capital (CRD#:142485)
• John Thomas Financial (CRD#:40982)
• Obsidian Financial Group (CRD#:104255)
• First Merger Capital (CRD#:44083)     
• Seaboard Securities (CRD#:755)
• Garden State Securities (CRD#:10083)
• Granta Capital Group (CRD#:114657)
• PHD Capital (CRD#:38785)

Kurta Law Can Help

If you worked with Stuart Jeffery 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.