Gary Mark Goldberg (CRD #223919, Tuxedo Park, New York)

An AWC was issued in which Gary Mark Goldberg (CRD #223919) was assessed a deferred fine of $25,000, suspended from association with any FINRA member in all capacities for 18 months, and ordered to pay $594,590, plus interest, in deferred restitution to customers. Without admitting or denying the findings, Goldberg consented to the sanctions and to the entry of findings that he made unsuitable recommendations concerning purchases of variable annuities to customers who held both brokerage and advisory accounts. The findings stated that Gary Mark Goldberg recommended that customers who had or were in the process of establishing advisory accounts purchase B-shares of a particular variable annuity in their brokerage accounts while advisory shares of the variable annuity were also available to purchase. The advisory shares provided living and death benefits, sub-account investment options, and other features that were virtually identical to the B-shares, but at a lower cost to customers. Goldberg and his member firm earned a seven percent commission in connection with sales of B-shares of the variable annuity but did not earn any commissions for sales of advisory shares of the variable annuity. In addition, Gary Mark Goldberg recommended that each of the customers transfer the B-shares of the variable annuity from their brokerage account to their advisory account—usually within one business day of the initial purchase of the B-shares. As a result, the customers were required (and continue to be required) to pay annual advisory fees of 1.875 percent, as well as annual fees for the variable annuities that are 0.95 percent higher than if the customers had purchased advisory shares. The customers are also subject to a surrender fee for seven years as a result of purchasing the B-shares. Goldberg’s customers who held the B-shares have collectively paid approximately $594,590 in unnecessary fees as a result of the higher annual fees imposed by the B-shares. The suspension is in effect from March 20, 2023, through September 19, 2024. (FINRA Case #2019064776201)