Boca Raton, FL – SEC: ‘Guru’ Billked Chabad ‘Mispallelim’

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    Boca Raton, FL – The Securities and Exchange Commission this morning sued a South Florida broker who allegedly preyed on elderly, predominantly Jewish investors.

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    The SEC claimed that the broker, Gary J. Gross, defrauded clients, churned their accounts and fabricated account values.

    The alleged scam garnered him $700,000 in fees and commissions while causing client losses of $2.7 million, the SEC said.

    Mr. Gross was profiled by a handful of publications and his scam was reported reported by VIN News.

    Mr. Gross had a number of elderly Jewish clients who were devoted to him.

    One was the rabbi at his synagogue, and another was a Holocaust survivor who met the broker at a Jewish scholarship dinner.

    ”I was suicidal when I found out,” said Sheila Kramer, 72, of Deerfield Beach, who lost $1 million.

    Nearly a dozen investors said they trusted Gross, in part because of the devotion he showed to Orthodox Judaism, promoting himself as mishpoche: part of the family. Sometimes, he would wear his prayer shawl to the office, literally cloaking himself in Yiddishkeit


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    21 Comments
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    Anonymous
    Anonymous
    15 years ago

    now lives in Far Rockaway

    seer
    seer
    15 years ago

    it is quite possible he churned the investments as the market was weak.thus the losses. in a weak market people lose .

    Anonymous
    Anonymous
    15 years ago

    the talis at work is a dead give-away

    Frumyid
    Frumyid
    15 years ago

    This guy has no soul. Stealing from elderly holocaust survicvors

    Anonymous
    Anonymous
    15 years ago

    All of this is narishkeit. It is not true and blatant lies from a known anti- semite in Florida. He would never wear a tallis to work, how low and silly would that be?

    Anonymous
    Anonymous
    15 years ago

    I’m sure they don’t mean talis. They’re probably talking about wearing tzitzis in the office.

    Anonymous
    Anonymous
    15 years ago

    to frumyid

    stealing from a non-survivor is ok

    Anonymous
    Anonymous
    15 years ago

    he does not live in far rock.his kids do.they are both great guys…dont start silly rumors.

    mccain palin 08
    mccain palin 08
    15 years ago

    I always said that but people are way to naive.

    the choftz chaim says that you be wary of those who hide under religion so people should think they are holy

    Use your head
    Use your head
    15 years ago

    It’s funny how people go nuts when it comes to a sin like homosexuality, but when it comes to business and financial crimes people are less concerned. Sure, homosexuality is called “to’evah”, but if you read the Chumash (end of Parashas Ki Saytzay) – you will find that dishoness business dealings are referred to as “to’avas Hashem”. So I think we have our priorities rather corrupted.

    Anonymous
    Anonymous
    15 years ago

    his son lives in far rockaway not him

    frummy
    frummy
    15 years ago

    It’s funny how people go nuts when it comes to a sin like homosexuality, but when it comes to business and financial crimes people are less concerned.

    And how about bugs in water, wigs from India, going to a Lipa concert, listening to music?

    Stealing must be ok because some rabanim are so farshtupt in it themselves that they refuse to talk about the subject. And molestors is also ok in our community as long as the guy is not from wall street.

    Anonymous
    Anonymous
    15 years ago

    there are no priorities or prefernces in aveiros. all are bad and should be dealt with accordingly. i am sure that there are plenty of erliche rabonim who are trying as best they can to control them. it is only when dealing with an eveira becomes a kardom lachpor bah, that it is wrong.

    dzm
    dzm
    15 years ago

    This wasn’t a scam

    Use your head
    Use your head
    15 years ago

    Lo saGURU mip’nei ish – don’t think someone is an expert just because he gives an impressive appearance.

    NY ATTORNEY
    NY ATTORNEY
    15 years ago

    People are innocent until proven guilty in this country and according to halacha.

    bigwheeel
    bigwheeel
    15 years ago

    NY ATTORNEY 4:52PM. …People are innocent until proven guilty in this country and according to Halacha… …But the losses of hard earned money are real. And the “Broker” continues his daily life undisturbed. Personally, I don’t know how he can face those people whose fortunes were wiped out!!!

    Ryan says
    Ryan says
    15 years ago

    I was a stockbroker for many years! I never received a single complaint from a client. However,

    many clients lost considerable fortunes thru incompetent but well meaning brokers. Todays Banks and Investment Banks are an example of mismanagement knowledge of esoteric products.

    The people should have been more careful with whom they trusted their monies. If there was fraud or “inappropriate investments under the exchange “KNOW YOUR CUSTOMER RULE” the broker should be taken to arbitration.

    In this market many, many competent brokers have lost most of their clients’ money. We are suffering a complete breakdown of America’s asset base for over a year!!!!!!!!!!!!!!!!!!!

    Big Mike
    Big Mike
    15 years ago

    What I see are gonoovim are basically tolerated in the frum community.

    Commentator ben Torah haTzaddik
    Commentator ben Torah haTzaddik
    15 years ago

    I hope he has a full collection of gedolim pictures on the walls of his office and did the deals with his tefillin on in shul during davening,That gives the transactions brochas.

    guy
    guy
    15 years ago

    For almost 20 years I took brokers to arbitration. In New York the odds of winning are only 18% of the cases that go to trial. Most are settled for pennies, though elderly people do get a better shake than middle aged people even when the broker broke the Know you customer rule to both.