Police officials in Tustin, California arrested Guatam Arora on charges of securities laws violations and money laundering fraud following a California Department of Insurance investigation into the former Transamerica Financial Advisors broker.
In 2019, Transamerica terminated Guatam Arora (CRD #5443201) for participating in unapproved investments away from the firm and for entering into lending agreements with promissory notes without approval. In 2020, FINRA barred Arora for improperly selling away from the firm, and for refusing to cooperate with its investigation.
The California Department of Insurance's investigation found that Arora made numerous material misrepresentations about the investments he sold away from Transamerica, with investigators describing the investments as "fictitious" and a multi-level marketing (MLM) agency that Arora had misrepresented to clients as a legitimate investment.
The report indicates that Arora initially agreed to pay $57,000 in restitution to the victims of these fake investments, but that Arora failed to pay any portion of the restitution. Following Arora's 2022 ban from the California insurance industry, a warrant was issued for his arrest due to the suspected fraud.
The California Department of Insurance press release announcing the arrest indicates that Arora will be prosecuted by the Orange County District Attorney's Office's Major Fraud Unit.
If you invested with Southern California broker Guatam Arora who recommended or sold you securities or engaged in loans or other investment activities away from the Transamerica Financial Advisors firm, and this prohibited selling away misconduct and misrepresentation has proven harmful to your investments or interests, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.