Megurditch “Mike” Patatian Investigation
November 2021- Westlake Village, CA
According to publicly available records, Mike Patatian a former broker who was last employed by Western International Securities, Inc. discloses a pending regulatory event , 9 prior customer disputes and 3 terminations from employment.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In 2/2021, FINRA initiated an a complaint against Patatian, alleging that he made recommendations to customers to purchase non-traded real estate investment trusts (REITs) that were unsuitable because he lacked a reasonable basis to recommend the investment to any investor. FINRA further alleges:
- from 4/2013-3/2017 Patatian recommended 81 purchases of more than $7.8 million in non-traded REITs to 59 customers, 21 of which are senior citizens.
- that Patatian did not understand the basic features and risks of the investments
- that six of Patatian’s customers had liquidity concerns
- that Patatian caused customers to incur taxes and surrender fees by recommending that customers cash in annuities to fund the purchases
- that in 26 instances Patatian inflated the customer’s net worth on the firm’s REIT paperwork in order to evade limitations based on the customer’s net worth.
- that Patatian was paid commissions of $458,418 from the sale of the 81 REITs, which represented about 80% of his earned commissions from 4/2013-3/2017.
The FINRA investigation is still pending. A copy of the FINRA disciplinary pleading can be viewed here.
Patatian was discharged from WM Financial Services in 2/2004 “due to inconsistencies in statements provided to regional sales manager”. In 3/2013 he was permitted to resign from Cuso Financial Services for “failure to follow firm policy with regards to firm transaction documentation.” Newbridge Securities permitted him to resign in 3/2020 for “Rep failed to disclose arrest information during his pre-hire process”.
Patatian was employed by Western International Securities from 4/2013-4/2020. Prior employment in the industry includes Cuso Financial Services, Newbridge Securities and Supreme Alliance.
ARE YOU A VICTIM OF MIKE PATATIAN ?
According to the FINRA disciplinary pleading there are 59 firm customers that were sold $7.8 million in non-traded REITs. If you are a victim of Mike Patatian, call to learn how you may be able to recover damages through FINRA arbitration.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, 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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