Gary Scheer

Full Report

Key Points

• Gary Scheer, managing member of Retirement Financial Advisors, LLC in Morristown, NJ, had his investment adviser registration revoked in 2020 by the New Jersey Bureau of Securities.
• He was assessed a $750,000 civil penalty for violating state securities laws and breaching fiduciary duties to clients.
• From 2010 to 2018, Scheer recommended and sold over $12 million in unregistered securities to at least 50 investors, earning more than $600,000 in undisclosed commissions.
• Six of the seven investments he promoted were later determined to be fraudulent, including ties to the $1.2 billion Woodbridge Ponzi scheme and the $47 million Northridge real estate scam.
• Scheer continued recommending these high-risk, unregistered products despite awareness of regulatory scrutiny on similar offerings.
• He failed to conduct adequate due diligence, misrepresented risks, and omitted disclosure of conflicts of interest from commissions.
• Investors suffered significant losses of retirement savings due to these fraudulent investments.

Overview

Gary Scheer is the managing member and sole investment adviser representative of Retirement Financial Advisors, LLC, a firm based in Morristown, New Jersey, where he provided financial planning and investment advice. A Purdue University graduate, he holds certifications as a Certified Senior Advisor and Registered Financial Consultant, and has been in the industry for over 40 years, previously affiliated with firms like Woodbury Financial Services. His practice focused on retirement planning, insurance-based activities, and recommending securities to clients, operating from an office on Madison Avenue. Scheer also served in community roles, including as a local Jewish leader, but his professional activities came under scrutiny for unethical investment recommendations.

Allegations and Concerns

Scheer faced allegations of selling unregistered securities as an unregistered agent, making material omissions or misrepresentations about investment risks, and failing to disclose conflicts of interest from commissions. He breached fiduciary duties by not conducting reasonable due diligence on investments, including those later exposed as Ponzi schemes like Woodbridge and Northridge. Regulators highlighted his persistence in recommending fraudulent products despite knowledge of prior regulatory actions against similar issuers. Additional concerns include his involvement in investments tied to franchises, pension income streams, real estate development, and mortgages, most of which collapsed due to fraud. No criminal charges were filed, but the civil penalties underscore systemic ethical lapses in his advisory practices.

Customer Feedback

Online presence shows a 4.9-star rating from 169 reviews on his firm’s listing, with clients praising personalized service and long-term financial guidance, such as one noting “Gary has been our family financial advisor for years and always provides sound advice.” However, these appear curated on his platform, potentially biased. Negative feedback is scarce in public forums, but victims of his recommended investments reported significant losses, with regulators noting defrauded investors lost savings through his misleading recommendations. The BBB profile is not accredited, with no specific complaints listed, though the fraud allegations imply widespread dissatisfaction among affected clients. One broker check report mentions a written customer complaint, but details are limited.

Risk Considerations

Financial risks are high due to Scheer’s history of promoting fraudulent investments, potentially exposing clients to total principal losses in Ponzi schemes. Reputational risks stem from his revoked registration and $750,000 penalty, which could deter partnerships and signal untrustworthiness in the industry. Legal risks include possible future civil suits from defrauded investors seeking restitution, as federal and state authorities continue enforcement against the underlying scams. Overall, engaging with Scheer carries elevated compliance risks, as his past violations of securities laws indicate a pattern of inadequate oversight and ethical breaches.

Business Relations and Associations

Scheer was affiliated with Woodbury Financial Services from 2005 to 2006 and operated independently through Retirement Financial Advisors, LLC. He recommended investments from fraudulent entities like Woodbridge Securities (a $1.2 billion Ponzi scheme) and Northridge Holdings (a $47 million real estate scam charged by the SEC). Other associations include issuers of unregistered securities in franchises, pension streams, and mortgages, many shut down for fraud. No current partnerships are evident post-revocation, but his firm remains listed, potentially indicating ongoing advisory activities under scrutiny.

Legal and Financial Concerns

In 2020, the New Jersey Bureau of Securities issued a Summary Penalty and Revocation Order against Scheer for securities law violations, resulting in a $750,000 fine and license revocation. He was involved in a 2008 workers’ compensation lawsuit (Scheer v. New York State Ins. Fund) related to an injury claim, but no fraud was alleged there. A 2016 mortgage foreclosure complaint was filed against Susan Scheer, possibly a relative, but details do not directly implicate him. No bankruptcy records were found for Gary Scheer, though a separate court document mentions a bankruptcy case unrelated to him. Unpaid debts are not documented beyond the outstanding civil penalty.

Risk Assessment Table

Gary Scheer’s case reveals a troubling pattern of prioritizing personal commissions over client welfare, culminating in regulatory sanctions that expose systemic flaws in his advisory approach. While his firm maintains a polished online facade with positive reviews, the documented fraud undermines any perceived reliability, advising extreme caution for potential clients. This highlights broader industry vulnerabilities where unchecked recommendations can devastate investors’ savings.