Estill Springs, Tennessee
The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA’s chief role is to protect investors by maintaining the fairness of the U.S. capital markets.
All stockbrokers and broker dealers (brokerage firms) are required to be licensed by and subject to the rules and regulations of FINRA. Each month FINRA publishes disciplinary actions against brokers and broker dealers. Discipline can range from monetary fines and suspensions, or in extreme cases, revocation of licensing and a bar from the securities industry.
See the FINRA website for current and historical disciplinary actions.
Scottie Brent Chitwood (CRD #4469472, Registered Representative, Estill Springs, Tennessee) submitted a Letter of Acceptance, Waiver and Consent in which he 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. The 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)
FINRA records indicate Chitwood was registered with Westminster Financial Securities from 4/2011-3/2013. Prior to that he was registered with Edward Jones.
If you have questions about investment losses or the way your brokerage account has been handled, please contact us to discuss your legal rights.
Rex Securities Law , located in Boca Raton, FL, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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