A former insurance coverage agent and registered rep, Gautam Arora, was once arrested closing Thursday in California after an investigation through the state’s Division of Insurance coverage discovered he allegedly defrauded 4 sufferers out of $100,000 to safe investments that didn’t exist.
Arora, 38, was once arrested in Tustin, a town in Orange County, on 11 legal counts of securities violations and cash laundering, in step with a commentary from the California Division of Insurance coverage.
Arora were a dealer approved with Transamerica Monetary Advisors from 2013 to 2019, in step with his BrokerCheck document. Apparently a vital drawback for Arora and his purchasers was once the alleged promoting away of investments now not authorized or sanctioned through the company.
Transamerica Monetary Advisors discharged, that means fired, Arora in December 2019 after it gained knowledge indicating that Arora “solicited quite a lot of folks to take part in unapproved investments clear of the company,” in step with the BrokerCheck profile. “Moreover, the consultant entered into lending preparations and promissory notes with those folks with out receiving prior approval from the company.”
The Monetary Business Regulatory Authority Inc. barred Arora a yr later when did not cooperate with Finra’s investigation concerning the topic.
Arora may just now not be reached for touch upon Tuesday morning.
After he was once arrested Thursday, Arora was once booked into the Orange County Prison. Bail was once set at $100,500.
“Arora labored as a certified insurance coverage agent between 2018 and 2019 and recruited folks to paintings for him in a multi-level advertising company,” in step with the California Division of Insurance coverage. “He bought sufferers’ personal monetary knowledge thru an alleged ‘monetary evaluation,’ then solicited sufferers to spend money on his fictitious investments.”
“Arora made a large number of subject material misrepresentations of truth in regards to the investments and did not make purchasers acutely aware of his deficient monetary standing, which incorporated: overdrawn financial institution accounts, over $68,000 in bank card debt, and filed civil fits and orders to pay unpaid money owed,” the Division of Insurance coverage commentary persevered. “Sufferers had been ended in consider that their investments had been legit.”
Supply Via https://www.investmentnews.com/former-broker-insurance-agent-arrested-in-california-on-fraud-charges-230217