Megurditch “Mike” Patatian Reportedly made Unsuitable Recommendations in REITs, Variable Annuities
According to an Extended Hearing Panel Decision posted by FINRA on June 10, financial advisor Megurditch “Mike” Patatian (CRD No. 4047060) allegedly made unsuitable recommendations to his customers for REIT purchases, variable annuity surrenders, and variable annuity exchanges. Further, he reportedly overstated his customers’ financial information and investment experience, to obtain approval of the REIT purchases. FINRA has reportedly barred Patatian from associating with any FINRA member in any capacity for these violations. The FINRA panel has also reportedly ordered Patatian to disgorge the commissions from his allegedly unsuitable recommendations, pay restitution to customers who sold their REITs at a loss, and offer rescission to the customers who have not sold their REITs, according to the Decision.
According to the original complaint, Patatian purportedly failed to conduct reasonable diligence to understand non-traded REITs. Some of Patatian’s customers reportedly had liquidity concerns and thus his recommendation to purchase an illiquid non-traded REIT was further unsuitable due to each customer’s specific situation and needs.
For more information see Did your Financial Advisor Recommend Investing in Non-Traded REITs?
The complaint also alleged that Patatian caused customers to incur taxes and surrender fees by recommended that the customers surrender existing variable annuity policies when he failed to understand the adverse financial consequences of the surrenders. Patatian also allegedly recommended variable annuity exchanges that were unsuitable because he failed to understand the consequences of those exchanges, including the increased cost of the new variable annuities and the fact that a return of premium death benefit was not a standard feature of all variable annuities, according to FINRA.
According to FINRA’s complaint, Patatian purportedly impersonated a customer in a telephone call with an insurance company to obtain the contract value and surrender fee for the variable annuity and allegedly inflated a customer’s net worth on the firm’s REIT paperwork in order to evade the limits.
Megurditch “Mike” Patatian reportedly has 9 customer complaints on his record, and 3 employment separations, according to FINRA.
He was reportedly affiliated with the following FINRA registered firms, among others during his career in the securities industry:
05/08/2020 – 03/04/2021, SUPREME ALLIANCE LLC (CRD#:45348), CHARLOTTE, NC,
04/05/2013 – 04/02/2020, WESTERN INTERNATIONAL SECURITIES, INC. (CRD#:39262), Westlake Village, CA
03/15/2004 – 04/02/2013, CUSO FINANCIAL SERVICES, L.P. (CRD#:42132), GRANADA HILLS, CA
Recovery of Investment Losses through FINRA Arbitration
The White Law Group is investigating potential securities claims involving the Megurditch “Mike” Patatian and the liability his employers may have for failure to supervise him. When brokers and registered investment advisors violate securities laws, such as churning accounts or making unsuitable investment recommendations, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
We represent investors in all 50 states including California. Our attorneys have recovered millions of dollars from many brokerage firms in the past.
If you are concerned about your investments with Megurditch “Mike” Patatian, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.