Financial Industry Regulatory Authority (FINRA) BrokerCheck reveals disclosures about securities broker Kyle William Chapman [CRD: 6303483, Henderson, Nevada]. Kyle Chapman worked for American Trust Investment Services from November 2020 to July 2022 and WestPark Capital, Inc. from August 2018 to October 2020. Recent disclosures reveal concerns about Chapman’s conduct, including allegations of unsuitable investment recommendations and breaches of fiduciary duty.
On September 5, 2024, FINRA initiated regulatory action against Kyle citing violations of Rule 15l-1(a)(1) under the Securities Exchange Act of 1934 (Reg BI). According to FINRA’s findings, Chapman recommended a client invest $50,000 in speculative, unrated debt securities despite the client’s stated objectives of income and preservation of capital. Chapman failed to perform reasonable due diligence on the security or review its offering documents. Furthermore, he provided third-party risk reports that misleadingly rated the security with a risk score equivalent to cash, thereby making negligent misrepresentations and omissions of material fact.
As part of an Acceptance, Waiver & Consent (AWC) agreement, Chapman consented to the sanctions without admitting or denying the findings. The sanctions included a $5,000 fine, disgorgement of commissions, and a suspension from all capacities for three months, effective September 16, 2024, through December 15, 2024.
On November 15, 2022, a client of American Trust Investment Services filed a FINRA arbitration [Case Number: 22-01809] alleging breaches of contract and fiduciary duty, promissory estoppel, and violations of California securities laws. The allegations related to investments in GWG L Bonds. The client initially sought $500,000 in damages. On February 14, 2024, the case was settled, with the firm agreeing to pay $75,000. Notably, Chapman did not contribute financially to the settlement.
If so, reach out to Soreide Law Group online here or at (888) 760-6552 to speak with a securities attorney. Soreide Law Group represents investors nationwide, handles cases on contingency, advances necessary costs, and works to recover losses caused by sales practice violations, though recovery is not guaranteed. Chapman and the firms he worked for deny accusations of sales practice violations.
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