David Patrick Thomas Sanctioned by Securities Regulators for Chadbourn Partners Alleged Sales
David Patrick Thomas, an investment adviser with SII Investments, Inc., was sanctioned by securities regulators as a result of his relationship with Chadbourn Partners, LLC. The Washington Department of Financial Institutions fined Thomas $40,000 and intends to deny Thomas’ future securities registration applications.
David Patrick Thomas offered and sold unregistered securities in the form of LLC memberships and debentures totaling more than $200,000 to at least four Washington investors that were issued by Chadbourn Partners, according to a Statement of Charges issued by the Washington Department of Financial Institutions.
David Patrick Thomas engaged in dishonest and unethical conduct by failing to inform investors that his securities broker-dealer, SII Investments, Inc., had never approved the offer or sale of any investments issued by Chadbourn Partners, according to the statement.
Thomas also omitted material facts by failing to disclose to investors that the predecessor corporation for Chadbourn Partners, Chadbourn Securities, Inc., had failed to file quarterly reports on time and was subject to a 2001 disciplinary order from the National Association of Securities Dealers for a series of alleged rules violations, including the understatement of total assets and net capital, failing to make timely reports, and failing to maintain accurate books and records, according to the statement.
The Peiffer Rosca securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.