Investor Alert! The Financial Industry Regulatory Authority (“FINRA”) announced that it is investigating securities broker William Nicholas Athas (CRD#: 3165470, Melville, New York) as of September 2020 to determine if he sold unsuitable investments and churned his clients’ accounts. It is unclear whether this relates to Athas’s employment at KC Ward Financial (2014 to 2016), Worden Capital Management (2016 to 2020) or SW Financial (2020 to present).
Not only that, but at least nine investors have filed disputes regarding William Athas’s sales practices. These disputes contain allegations of Athas churning accounts and breaching his fiduciary duties to his clients. Here’s more on these alarming disclosures about Athas, and what you could do if you lost money or otherwise sustained damages because of the securities broker.
The investigation into William Athas began in September 2020 according to FINRA BrokerCheck. First of all, the financial industry watchdog recommended disciplinary action against the broker in light of allegations that he violated securities laws and FINRA rules. Specifically, FINRA says that he may have churned accounts, excessively trading to generate commissions for himself. In addition, the securities broker purportedly made unreasonable recommendations. It is possible that Athas potentially failed to consider his clients’ investment objectives, risk tolerance or other suitability criteria.
Also, FINRA is investigating whether William Athas possibly recommended that his clients invest unreasonably large portions of their accounts in certain investments. Finally, the securities broker might have used margin for unsuitable purposes. Evidently, the investigation is ongoing. Critically, FINRA might bring a disciplinary action against the securities broker for purposes of sanctioning him.
Notably, a client filed a FINRA Arbitration Claim in May 2020 alleging that William Athas wronged them through excessively trading stocks in their account. Supposedly, Athas breached a contract and he failed to comply with his fiduciary responsibility. Further, the client alleged that Worden Capital Management negligently supervised the securities broker. Because of this, the client seeks compensatory relief of $84,932.35. This matter is awaiting a resolution as of March 4, 2021.
Apparently, in January 2017, a client of KC Ward Financial filed a lawsuit about William Athas’s actions. First of all, the client alleged that Athas or KC Ward Financial violated Texas State Securities Act. Secondly, William Athas supposedly made negligent decisions and had breached both a contract and fiduciary duty. Thirdly, the client alleged that the securities broker misrepresented and omitted important investment-related information. Finally, Athas purportedly acted deceptively and made unauthorized trades. All things considered, KC Ward Financial opted to settle this matter by making a $95,000 payment to the client in February 2018.
Past disputes about Bill Athas allege that he made unauthorized and excessive trades in client accounts. For example, Athas was involved in a client dispute that primarily alleged that he engaged in unauthorized trading. Evidently, that client received $40,000 in a settlement.
Apparently, Athas denies accusations of his sales practice violations. Have you incurred losses by investing with him? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have experienced losses because of their securities brokers and financial advisors.
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