Roy Gagaza: who is he?
Before joining Journey Wealth Management, Roy Gagaza was an officer in the military for more than 25 years. He helps clients reach their retirement objectives by using carefully thought-out financial plans.
Roy’s primary purpose is to help customers reach their goals and remain in long-lasting relationships with them and their families while honoring their wishes and offering them financial resources and guidance.
Throughout his professional life, Roy Gagaza of Journey Wealth Management has worked closely with several Chambers of Commerce, neighborhood school systems, CPAs, the highway patrol, and individual clients.
Hundreds of pre-retirees and retirees have profited from his lectures by receiving professional financial advice on how to protect their assets, plan for retirement income, and use tax-efficient methods to perhaps lower their taxes.
Consequently, Roy Gagaza Journey Wealth Management is now involved in a lawsuit that was brought about by the Securities and Exchange Commission (SEC). The lawsuit consists of a formal complaint that asks for several types of remedy, including an injunction. You can click the following link to learn more about him and his virtual reality: https://www.linkedin.com/in/roy-gagaza-980457174/
Case study
Roy Gagaza Journey Wealth Management under SEC V
Summary
By targeting a sizable number of buyers over at least 83 distinct deals, Roy Gagaza Journey Wealth Management effectively raised more than $10.8 million for 1 Global during the previously indicated time through the issue and sale of assets in activities that were not logged in.
A sizable fraction of the stockholders were Californian citizens. Fees from transactional operations connected to the transactions yielded an estimated $403,000 for Gagaza.
It was found that 1 Global, along with its president and CEO, Carl Ruderman, had been using investor cash in an unscrupulous manner without the knowledge of Roy Gagaza Journey Wealth Management and his clients, many of whom were putting away in retirement accounts.
The revenues were illegally redirected to fund Ruderman’s lavish lifestyle and the running of unrelated businesses, causing hundreds of millions of dollars to be embezzled.
Defendant
At the moment, Roy Gagaza of Journey Wealth Management resides in Manteca, California. The person in question is the sole proprietor of Journey Wealth Management Advisors, Inc., a California-based, licensed financial planning business.
The aforementioned entity was founded during the time frame specified in the Petition and holds authorization to function as a financial advisor in Hawaii and California. Gagaza was also connected to this company as a spokeswoman for asset advisers.
Authority
Roy Gagaza Journey Wealth Management is subject to the jurisdiction of this Court, and the Southern District of Florida is a suitable forum since 1 Global carries out business at its main office in Hallandale Beach, Florida.
Furthermore, Roy Gagaza Journey Wealth Management had regular business correspondence, phone calls, and written correspondence with 1 Global.
The activities under investigation comprised the offering and sale of unregistered securities without the required paperwork or broker-dealer association. The alleged infractions listed in this lawsuit are these acts.
Regarding the acts detailed in this Complaint, Roy Gagaza Journey Wealth Management used several state-to-state commercial channels, such as the postal system and federal transportation or transmission methods, in both direct and indirect ways, either on its own or in conjunction with other people.
False Claims
throughout the aim of offering and selling its shares, Global used contracts known as a Memorandum of Debt or Syndication Partner Agreement as the legal framework between the company and its shareholders throughout the majority of the four years.
The MOIs used the term “those making investments borrowers,” while the SPAs used the phrase “those who invest associates.”
Global issued its salespeople adverts as a means of self-promotion to shareholders.
According to the distribution procedure, which includes Gagaza, for every dollar it contributed to a merchant cash loan, it received a median return of 1.30 to $1.40.
This was the alleged means of profit generation for 1 Global and its shareholders.
The 1 Global Offering
The truth is that 1 Global, including Ruderman, has been shown to have distributed a sizeable amount of shareholders’ funds for purposes unconnected to the granting of merchant cash advances, like operating costs and non-MCA business operations.
Moreover, Ruderman participated in the theft of at least thirty-two million dollars from investors for his benefit.
Other businesses that Ruderman or his family had a direct stake in were also affected by this wrongdoing.
The previously mentioned expenses included funds intended to finance a family vacation to Greece, recurring payments for the purchase of a Mercedes-Benz, quarterly transfers for an American Express credit card, payments for Ruderman’s domestic staff salaries, $4 million set aside for the benefit of his family trust, and an additional $1 million given to one of his children for cryptocurrency investments.
1 Global and Ruderman’s False statements
To promote the acquisition through advertising campaigns, Global regularly provided Roy Gagaza Journey Wealth Management with promotional collateral in addition to other distributors.
Several components were included in the documents that were supplied, such as a FAQ section, a detailed historical overview of the company, and an explanation of the MCA scheme and the buying procedure.
Gagaza Roy The tools were used by Journey Wealth Management and other representatives to introduce potential investors to interested parties. The information was used in email correspondence and in verbal conversations with clients.
Requests for Settlement
Breach of Securities Act Sections 5(a) and 5(c)
Sections 1 through 34 of this Complaint are restated and reaffirmed by the Committee as though they were being said in full here.
According to this complaint, Roy Gagaza Journey Wealth Management issued and sold securities, but did not do so with a statement of registration that was filed with the regulator or accepted by it in compliance with the Securities Act.
Furthermore, those instruments were not excluded from registration requirements.
Infractions of Exchange Act Section 15(a)(1)
Without being linked with a firm that had been registered as a brokerage dealer by the Council or having authorization from the Securities and Exchange Commission to function as an agent or dealer, the individual engaged in acts that affected or attempted to impact the purchasing or selling of assets.
Requested Relief
As a result, the Commission humbly and respectfully requests that the Court find that Gagaza committed the alleged crimes.
Perpetual Restraining Order
Give Gagaza a direction for it to restore all illegally obtained revenues or profits that resulted from the acts and/or behaviors that are the focus of the current complaint, along with discriminatory interest in those amounts.
Disgorgement and Interest in Prejudice
Kindly issue an official direction directing Gagaza to pay a fine in compliance with the terms.
Additional Solace
Provide extra help if it is judged necessary and appropriate.
Maintaining Jurisdiction
Furthermore, the Commission humbly and sincerely requests that the Court of Appeal retain jurisdiction over this case to carry out the terms of any judgments or orders that may be issued, as well as to take into account any appropriate use or motion made by the Committee to bring additional remedies within the jurisdiction of this Court.
The Bottom Line
In conclusion, the Securities and Exchange Commission has sparked a legal dispute that involves Roy Gagaza Journey Wealth Management. In this controversial case, the SEC filed a formal complaint seeking various corrective remedies, including injunctions.