As an experienced financial analyst and legal expert, I’ve often found that in the world of investments, not all roads lead to prosper. Recently, a perfect example has made headlines – Gregory Alan Corrie, an investment product representative, has been slapped with allegations of excessive sales of Unit Investment Trusts (UITs), resulting in his barring from the securities industry by the Financial Industry Regulatory Authority (FINRA). The seriousness of the allegations and subsequent consequences shine a bright light on the importance of due diligence when choosing your financial advisor. Therefore, let’s delve into this case a bit deeper, unlocking its pertinent details and the subsequent lessons to be learned.
An Allegation of Serious Magnitude
Investors ought to understand that FINRA is an independent, non-governmental regulatory body that supervises brokerage firms and exchange markets across the country. It aims to safeguard the market from bad actors and illicit activities. As such, when they bar an advisor, it’s a serious matter.
In this case, Gregory Alan Corrie stands accused of excessive sales of UITs. UIT or Unit Investment Trust is a U.S. financial company that buys and holds a group of securities, typically stocks and bonds, and sells units in this trust to investors. It’s alleged that Corrie used these products excessively, triggering an internal investigation by his firm, Cambridge Investment Research, Inc. This misuse surely raises questions on the integrity of his practice and the financial security of his investors.
After a thorough review by his firm, they concluded to remediate payments related to Corrie’s trading activity before terminating his professional relationship. This action indicates the significance of the allegations against Corrie and the potential harm his activities could have caused to investors.
Gregory Alan Corrie: A Look into His Background
Please follow this link to view the detailed profile of Gregory Alan Corrie in FINRA’s BrokerCheck tool. This is a digital platform to verify the credentials of financial brokers and investment advisors.
- Corrie was professionally associated with Cambridge Investment Research, Inc. (CRD No. 39543) from January 2020 to March 2023.
- Prior to joining Cambridge, he also worked with Cetera Advisors LLC (CRD #10299/ Boise, ID) and Invest Financial Corporation (CRD #12984 / Boise, ID).
By examining Corrie’s profile on FINRA’s BrokerCheck, we can see that he has a substantial history in the securities industry. As Benjamin Franklin so wisely quoted, “Diligence is the mother of good luck,” and it’s prudent for investors to do their due diligence before entrusting their hard-earned savings to a financial advisor.
Demystifying FINRA Rule
As per FINRA, any acts inconsistent with just and equitable principles of trade are considered a violation of Rule 2010. In simpler terms, excessive use or inappropriate sales of any financial products falls under prohibited action. In Corrie’s case, that’s exactly what happened with his excessive sale of UITs.
This case serves as a classic example of the importance of monitoring your broker’s activities and understanding how to spot signs of fraud or misconduct. In fact, a study shows that 7% of advisors have misconduct records, so it’s critical to keep an eye on your investments.
Consequences and Lessons Learned
As a consequence of Corrie’s actions, not only has he been barred from the securities industry, but his former firm had to make remediation payments related to his trading activities. This is not just a professional catastrophe for Corrie; it’s a cautionary tale for other advisors and a wake-up call to investors.
The paramount lesson from this ordeal? As investors, we must perform proper due diligence before choosing a financial advisor. We must also continuously monitor the actions of our chosen advisor, ensuring we understand how our money is being invested. And remember, when it comes to investing, it’s always better to be safe than sorry.
