Former Royal Alliance Associates broker Gary John Basralian, barred from the securities industry in March 2018, faces criminal charges including wire fraud and investment adviser fraud for allegedly running a fraudulent real estate scheme in which he stole over $2 million from at least two clients.
According to the criminal complaint, Basralian (CRD #14385) intentionally devised a scheme to defraud investors and engaged in this fraud from 2007 through 2017, by directing his victims to write checks made out to "Masters Financial" and "Practical Guidance."
Although Basralian purportedly portrayed to his clients that the Masters Financial and Practical Guidance funds would be used for investments, he instead used them for personal expenses, having deposited the checks into an account he controlled.
The complaint also indicates Basralian repeatedly wired funds from a customer's account into various other accounts that Basralian himself owned or controlled for personal use, going so far as to create a fictitious report entitled "Non-Brokerage Assets," in which Basralian falsely represented that the funds were invested in assets away from Royal Alliance, such as an entity called Vieques Investment Group.
Rather than terminate Basralian, Royal Alliance in December 2017 permitted him to resign after receiving a complaint alleging that Basralian misappropriated client funds and had failed to disclose tax liens.
A pending customer dispute alleges fraud and breach of contract related to outside investments, while a related lawsuit alleges that Basralian preyed on elderly women disconnected from family, including one investor who suffered a brain injury before Basralian began stealing from her. Royal Alliance has purportedly refused to compensate the victimized clients for Basralian's alleged fraudulent acts and misappropriation of funds.
If you have invested with former Royal Alliance Associates broker Gary John Basralian or with any representative or financial adviser who has engaged in investment activity away from the firm or whose fraudulent failure to invest your funds as represented, including outright theft, conversion, or misappropriation from your brokerage account, has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.