Howard D. Richards and Gatekeeper USA, Inc.
Have you lost money with financial advisor Howard D. Richards from Mound and Plymouth, Minnesota? We are investigating allegations made by the Securities and Exchange Commission against Howard Richards, who previously worked as a financial advisor with Securus Wealth Management and Cambridge Investment Research, Inc. in Plymouth, Minnesota. The SEC alleges that Richards engaged in market manipulation of the price of Gatekeeper USA, Inc. stock.
Gatekeeper USA, Inc. is allegedly a startup company that marketed a container monitoring device used for cargo companies, although this device had not yet been manufactured or sold. The SEC alleges that Gatekeeper had financing deals that were dependent on sustaining a sufficient market price of Gatekeeper’s stock. The SEC alleges that Howard Richards, who held over 113,000 shares of Gatekeeper USA, knew about this financing contingency and had his advisory clients purchase Gatekeeper stock at inflated prices when the stock fell below certain levels.
The SEC further alleges that Howard Richards’ clients bought 473,000 shares of Gatekeeper during 2008 and 2009, and they purchased another 550,000 shares (for $1.1 million) between 2010 and 2013. It was alleged that Richards’ intention was to sell his shares for a large profit once the financing deal was complete. According to the allegations, clients paid on average $0.35 higher than preceding market prices at the times of purchase, and sometimes clients bought shares 100% higher than what other purchasers were buying Gatekeeper shares at. The SEC alleges that Richards misrepresented the risks of Gatekeeper to his clients. Howard Richards was barred from the securities industry, and ordered to pay penalties of $75,000 and disgorgement of $69,000 of ill-gotten gains.
Howard D. Richards, was a financial advisor and registered representative of Cambridge Investment Research from 2001 to December 2013. He also was affiliated with a registered investment advisory firm called Securus Wealth Management in Plymouth, Minnesota. In connection with this complaint, the SEC also brought a complaint against his supervisor, James Goodland, who was barred from acting as a supervisor in the securities industry and fined $30,000.
Brokerage firms like Cambridge Investment Research have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado and the Seattle area. We represent investors in FINRA arbitration proceedings in all 50 states, including investors in the Twin City area. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including LPL Financial, Merrill Lynch, Morgan Stanley, Smith Barney, Stifel Nicolaus & Company, UBS Financial Services, Oppenheimer, Charles Schwab, Wells Fargo Advisors, Ameriprise Financial Services, Raymond James Financial Services, ProEquities, Securities America, National Securities Corp., and many others.
Click to view: Richards SEC Comp
Click to view: Richards BrokerCheck 10.1.15
Click to view: Goodland SEC Comp
Click to view: Goodland BrokerCheck 10.1.15
Have you lost money with Howard D. Richards, Gatekeeper USA stock, or Cambridge Investment Research ?
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