Gruber forced out at AIG
By Bruce Kelly
April 18, 2008
In a shocking move, top-ranking executive Joseph B. "Joby" Gruber was forced to resign from two AIG Advisor Group units amid allegations that he allowed an underling to take continuing education exams in his name. The popular Mr. Gruber had multiple roles at AIG Advisor Group.
He was longtime president and chief executive of two of three AIG Advisor Group units, FSC Securities Corp. and Advantage Capital Corp., both of Atlanta.
In September, AIG Advisor Group chairman Peter Harbeck and president and CEO Larry Roth tapped Mr. Gruber to oversee recruiting and other business development for the broker-dealers in the network. His title in that capacity was president of the AIG Advisor Network.
Mr. Gruber, a 23-year veteran of FSC, was considered by many in the industry to be a key player in the growth and success of the AIG Advisor Group, the biggest network of insurance company owned broker dealers. Last year, the group posted $1.3 billion in gross revenue.
Mr. Roth will temporarily replace Mr. Gruber as head of FSC and Advantage Capital until a replacement can be found.
Mr. Gruber did not respond to a message left on his cell phone Friday afternoon.
“This is very much a surprise,” said Erin Botsford, an adviser based in Dallas and affiliated with FSC Securities.
Meanwhile, John Pluhowski, a spokesman for the AIG Advisor Group, today read a copy of the explanation for Mr. Gruber’s resignation to InvestmentNews.
“We have made a public filing with [the Financial Industry Regulatory Authority Inc. of New York and Washington] and that filing says that Mr. Gruber ‘permitted a subordinate to take his 2007 firm element continuing education proficiency tests, and a training program required by firm policy,’” Mr. Pluhowski said.
In a letter, obtained by InvestmentNews, which sent to AIG reps and advisers today, Mr. Harbeck acknowledged Mr. Gruber’s success, saying “he helped build FSC’s leadership position in our industry.”
Last month, Finra fined and suspended 16 current and former registered representatives of State Farm VP Management Corp. of Bloomington, Ill., for misconduct involving Finra’s continuing education requirements for registered representatives.
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