National investment loss lawyers KlaymanToskes is investigating Ray Gallette (CRD# 3041923) and Lorraine Gallette (CRD# 6192487) of Gallette Financial Services., following the filing of several customer complaints alleging more than $1 million in damages due to unsuitable investment recommendations in alternative investments including Direct Participation Programs (DPP & LP Interests) and real estate securities.
Investors that suffered losses with Ray Gallette and/or Lorraine Gallette at Gallette Financial or Coastal Equities in El Dorado Springs, MO are encouraged to contact attorney Lawrence L. Klayman, Esq., for a free consultation to discuss recovery options at 888-997-9956 or lawrence@klaymantoskes.com. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
According to FINRA BrokerCheck, Ray Don Gallette was registered with Coastal Equities, Inc. from 2013 to 2020, and did business as Gallette Financial Services. Ray Gallette has eight total customer complaints disclosed, including six of which are pending, listed below:
Two previously settled complaints against Ray Gallette alleged that Coastal Equities failed to conduct due diligence on certain investments in the customers’ accounts, and that Ray Gallette, as a representative of Coastal, made unsuitable investment recommendations. Both complaints alleged unsuitable recommendations to invest in Direct Participation Programs (DPP & LP Interests), while one of the complaints additionally alleged unsuitable investments in real estate securities.
Lorraine Marie Gallette was most recently registered with Moloney Securities Co., Inc. from 2021 to 2022 and with Coastal Equities, Inc. from 2013 to 2020, also doing business as Gallette Financial Services. According to FINRA BrokerCheck, Lorraine Gallette has seven customer complaints, including five of which are pending. The complaints reported against her are the same complaints against Ray Gallette, with the exception of the fourth complaint.
Direct Participation Program (“DPP”) investments are considered illiquid due to not being traded on a market exchange. Typically when investors purchase DPP’s, they are unable to liquidate until their target maturity date. As a result, DPPs are likely only suitable for investors who can afford to have their funds tied up for long holding periods, sometimes decades.
DPP’s are generally organized as a partnership whereby the investors or “limited partners” deliver their funds to a “general partner” who invests the pooled capital for the benefit of the group. DPP investors may gain tax benefits as a result of its business structure, however, they also generally require that potential investors meet certain net worth requirements.
While DPPs may provide investors with high returns and tax advantages when managed correctly, investors in DPPs may face severe losses as a result of poor management. Brokerage/advisory firms and their registered representatives may be held liable for DPP & LP Investment losses under the Securities Act of 1934 and the Financial Industry Regulatory Authority’s (“FINRA”) Rule 2310.
Former customers of Ray Gallette, Lorraine Gallette, and/or any other broker/advisor at Gallette Financial Services, and/or Coastal Equities, who suffered investment losses are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lawrence@klaymantoskes.com for a free consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com