Michael Chatwin Sanctioned by Securities Regulators for Allegedly Failing to Conduct Suitability Reviews
Michael Chatwin was suspended from the securities industry for three months and fined $5,000 by the Financial Industry Regulatory Authority (“FINRA”) in connection with claims that he failed to conduct suitability reviews for investors.
Chatwin was SCIUS Securities LLC’s Compliance Officer and sole General Securities Principal from around May 2007 through April 2012. One of Chatwin’s responsibilities, according to FINRA, was to monitor “all customer transactions on a daily basis for suitability.”
From the third quarter of 2007 through the second quarter of 2009, two SCIUS Securities representative found investors who invested over $5 million in private placements for five different companies – 10X Technology LLC, Jiminy, Neuros Technology, Advance Diamond Technologies, Inc., and Mediafly, Inc., according to FINRA. Chatwin did not conduct any reviews to determine whether the investments were suitable for the investors SCIUS Securities found.
Generally, when a broker-dealer firm does not conduct a suitability review when recommending a private placement, the firm is in violation of regulatory rules designed to protect the investing public.
Chatwin consented to the sanctions without denying or admitting FINRA’s factual findings.
The Peiffer Rosca securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting victims with the recovery of their losses in connection with unsuitable investments recommended to investors by their financial professional but not sanctioned by the professional’s firm. 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 recommendations of unsuitable investments made by their financial professionals may contact the securities lawyers at Peiffer Rosca, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.