Financial Industry Regulatory Authority (FINRA) BrokerCheck shows disclosures about securities broker / financial advisor Patrick Michael Egan [CRD: 2973478, Glendora, California]. Egan has worked for Western International Securities Inc. as a securities broker since January 22, 1998, and as a financial advisor since July 30, 2007. Evidently, Egan has faced client disputes concerning his conduct while working for Western International Securities. Keep reading to learn more about the allegations.
On June 15, 2022, the Securities and Exchange Commission (SEC) filed Complaint No. 2:22-cv-04119 about Western International Securities, Inc. and five of its registered representatives, including Patrick Egan, for violating Regulation Best Interest (Reg BI). This regulation requires financial professionals to act in the best interest of their retail clients when making investment recommendations.
Between July 2020 and April 2021, these representatives supposedly recommended that retail clients invest in L Bonds, a risky, unrated debt security offered by GWG Holdings, Inc. These bonds were high-risk and illiquid, and only suitable for individuals with significant financial resources. However, the representatives allegedly sold $13.3 million in L Bonds to clients who did not have the necessary risk tolerance or financial experience to handle those investments.
The SEC found that Western and its representatives failed to understand the risks of these bonds and did not provide enough guidance to ensure compliance with Reg BI. As a result, Egan reportedly made recommendations to at least seven clients without considering their best interests.
On August 28, 2024, a final judgment was issued against Patrick Egan. He was ordered to pay $5,490 in disgorgement (profits from the violations) and a civil penalty of $12,500.
Also, FINRA Arbitration No. 23-01859, filed on May 29, 2024, resulted in a settlement of $11,000. In this case, the client accused Egan of negligence and making misrepresentations in relation to corporate bonds, prompting the settlement.
On April 8, 2024, FINRA Arbitration No. 23-01260 involving Egan’s conduct settled for $13,500. The client alleged that Egan made unsuitable recommendations and misrepresentations concerning corporate bonds.
On March 6, 2024, a client of Western International Securities filed FINRA Arbitration No. 24-00380, accusing Patrick Egan of making misrepresentations regarding the sale of corporate bonds. The client asked for $50,001 in damages. This matter is currently pending a resolution.
Egan was also referenced in FINRA Arbitration No. 23-03592 in which a client asked for $89,500 in damages. The client alleged in this December 2023 matter that Egan made misrepresentations regarding corporate bonds, which allegedly caused them financial harm. This matter is currently pending.
Contact Soreide Law Group online or at (888) 760-6552 to speak with a securities attorney regarding your investments. Egan and Western International Securities deny accusations of sales practice violations. Soreide Law Group has experience representing investors throughout the country. The firm handles cases on a contingency basis.
Soreide Law Group is investigating potential investor claims involving Cambridge Investment Research following a FINRA disciplinary action concerning Unit Investment Trust (UIT) recommendations. In April 2026, FINRA censured Cambridge Investment Research after finding supervisory deficiencies involving certain UIT recommendations made to retail clients. Investors who incurred excessive fees, unnecessary costs, or other damages associated with […]
Soreide Law Group is investigating potential investor claims involving Infinity Financial Services after FINRA sanctioned the firm for supervisory failures involving deferred variable annuity exchanges and recommendations. Investors who incurred surrender charges or other losses in connection with variable annuity transactions recommended through Infinity should review the allegations that led to FINRA's disciplinary action against […]
Soreide Law Group is investigating potential investor claims involving losses in NextGenTech Investments LLC, a private fund managed by Sestante Capital LLC that purported to provide investors with economic exposure to shares of private companies, including Anduril Industries. Recent criminal proceedings involving Sestante Capital's manager have raised significant concerns regarding the offering, the representations made […]
Phone:
Fax: 1-954-760-6553
Email: info@securitieslawyer.com