GunnAllen Financial, Inc.
GunnAllen’s Growth Comes Under Scrutiny
According to Registered Representative Magazine, GunnAllen Financial, in Tampa, Fla., had been in business for six years and had about 200 brokers and $1.2 billion in assets. Its founders then went “into overdrive,” recruiting producing brokers from other firms willing to move to an firm that offered the freedom to run their businesses as they chose. Three years later, GunnAllen had over 900 reps and $5.8 billion in assets. But along with all that growth, GunnAllen acquired something else — a reputation for hiring a relatively high proportion of reps with reported regulatory problems, and some even with criminal complaints. Nearly 5% percent of GunnAllen brokers were under “enhanced supervision” because they had three or more marks on their regulatory records. These marks would include customer complaints.
GunnAllen Ordered to Pay $1.8 Million to Investor
A Federal Court in San Francisco ordered GunnAllen Financial, Inc. and its former broker to pay an investor $1.8 million. As part of the award, GunnAllen was ordered to pay the client almost $1.5 million in punitive damages for claims which included “churning” the client’s account for commissions.