Broker Clement Chichester Targeted In Disputes About Alternative Investments
The Financial Industry Regulatory Authority (“FINRA”) reports troubling allegations of misconduct by securities broker Clement Chichester (CRD#: 1255275, Westlake Village, California). It appears that three or more investors complained about Chichester, who worked for Western International Securities from 2012 to 2017 when the firm disaffiliated with him for purported misconduct. Critically, FINRA also barred Chichester from being a securities broker. Here’s a summary of these disclosure and what you could do if you incurred losses because of Chichester.
Western International Securities Client Files Dispute About Clement Chichester
Apparently, a client of Western International Securities brought a dispute about Clement Chichester in March 2020. Supposedly, Chichester made investment recommendations which caused the client to invest in a private placement and a non-traded REIT. Typically, non-traded REITs are risky investments which do not trade on exchanges and which are highly illiquid investments. It is possible that the broker might have overlooked the client’s investment objectives, age, risk tolerance or other suitability criteria. For this reason, the client demands between $250,000 and $500,000 to offset losses from Chichester’s recommendations. This matter awaits a resolution.
Chichester Allegedly Breaches Fiduciary Duty Regarding DPP, LP Products
Evidently, a Western International Securities client brought a lawsuit in March 2018 regarding Clement Chichester’s sales of alternative investments. In this FINRA Arbitration Claim, the client alleged that Chichester acted in breach of fiduciary duty. Secondly, the client maintained that the broker made unsuitable investment recommendations. In fact, the client indicated that the broker advised an unsuitable investment strategy. Finally, Chichester supposedly misrepresented information and possibly concealed information regarding those investments. Because of this, Western International Securities opted to settle this matter through making a $100,000 payment to the client in August 2018.
Moreover, FINRA notes that a WM Financial Services client disputed Chichester’s sales practices years ago. Mainly, the broker was accused by the client of selling a variable annuity without informing the client about what was being purchased. However, this matter was denied.
Chichester Barred For Failure To Cooperate With FINRA During A Regulatory Investigation
It is commonplace for brokers who fail to comply with FINRA Rule 8210 to face expulsion as the broker’s non-compliance causes FINRA to be unable to determine the extent of the broker’s sales practice violations, if any.
Notably, FINRA announced in October 2017 that it barred Clement Chichester as a securities broker for FINRA member firms because of violating Rule 8210. Specifically, FINRA stated that Chichester did not provide requested documents and information. The financial industry watchdog reportedly investigated the broker following allegations of his possession of funds from a Western International client.
Losses From Clement Chichester?
Apparently, Clement Chichester denies allegations of his sales practice violations that have been alleged by his clients and FINRA. Have you experienced losses by investing with Chichester? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with knowledgeable counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and it advances all costs. The law firm has recovered millions of dollars for clients who have sustained losses due to improper conduct of brokers and financial advisors.
