Many investors have sustained losses due to the misdeeds and wrongdoing of Robert A. Gist (“Gist”). According to FINRA, from approximately 2003 to 2011, Gist misappropriated millions of dollars from approximately 30 investors. It is alleged that Gist solicited his clients to purchase securities, which he then diverted and made purchases in ENCAP Technologies, LLC, which he co-founded.
It is also alleged that Gist fabricated account statements and holdings which he then provided to his clients. During this time period, Gist was employed by Resource Horizons Group, LLC. (“Resource Horizons”).
Under FINRA rules and regulations, Resource Horizons has a duty to supervise the activities of their Brokers/Financial Advisors or they may be held liable for client losses.
According to The Securities Law Firm of Menzer & Hill, P.A., it’s unfortunately not uncommon for Brokers to get away with this type of egregious behavior, as we’ve seen many Brokerage Firms fail in their supervisory responsibilities. Fortunately for unsuspecting investors, they do have recourse through the FINRA arbitration process.