Tennesse Broker Banned by FINRA

Soreide Law Group, a Securities Arbitration Law Firm, (888) 760-6552, obtained the following information on FINRA’s website under “Disciplinary and Other FINRA Actions, July, 2013.”

Scottie Brent Chitwood (CRD #4469472, Registered Representative, Estill Springs, Tennessee)

was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Chitwood consented to the described sanction and to the entry of findings that in connection with recommendations to purchase variable annuities, he inaccurately represented to customers that the principal of their investments would be protected from loss. Chitwood’s statements led these customers to believe incorrectly that their principal was protected from loss.

Chitwood also failed to adequately disclose the surrender fees associated with the variable annuities he sold. The findings stated that Chitwood improperly exercised discretion in customers’ accounts and engaged in an unauthorized trade on a customer’s behalf. Chitwood did so by making mutual fund purchases without the customers’ prior authorization.

FINRA's findings also stated that Chitwood made inaccurate investment-objective entries on new account documents for customers, thereby causing his firm to create and maintain inaccurate books and records. (FINRA Case #2011027571901)

According to FINRA's BrokerCheck, this broker was previously registered with FINRA at the following brokerage firms:

WESTMINSTER FINANCIAL SECURITIES, INC.
CRD# 20677
WINCHESTER, TN
04/2011 - 03/2013

EDWARD JONES
CRD# 250
WINCHESTER, TN
01/2002 - 05/2011

This ends the information obtained on FINRA’s website.

If you’ve experienced investment losses due to your stock broker/financial advisor’s recommendations, call Soreide Law Group for a free consultation with an attorney on how to potentially recover your losses: 888-760-6552.