Previously registered broker Megurditch Mike Patatian allegedly made 81 unsuitable recommendations to 59 customers to purchase REITs, according to FINRA’s Complaint under review by attorney Alan Rosca.
Investors should note that during the time of Patatian’s alleged misconduct, he was reportedly in the employment of Western International Securities as a registered representative.
Investor rights attorney Alan Rosca of the Rosca Scarlato LLC law firm and his colleagues is investigating conduct related to Megurditch Mike Patatian’s alleged unsuitable recommendations to customers. Investors who are concerned about their investment with Patatian are encouraged to contact attorney Alan Rosca or his colleagues for a free, no-obligation consultation and discussion of potential options. Call 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
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Patatian Allegedly Recommended Unsuitable REIT Investments
While Megurditch Patatian (also known as Mike Patatian) was associated with Western International Securities from 2013 through 2017, he allegedly made 81 recommendations to 59 customers to purchase non-traded real estate investments (REITs) according to FINRA’s complaint.
The Complaint further alleges Patatian’s recommendations were unsuitable because he lacked reasonable basis to recommend the product to any investor. Furthermore, he allegedly did not understand the basic features and risks associated with the non-traded REITs and failed to conduct reasonable due diligence to understand the product before making recommendations to customers.
In addition, six of Mike Patatian’s customers reported liquidity concerns due to unsuitable recommendations to purchase illiquid non-traded REITs with a disregard of the customer’s specific investment goals, profile, and needs.
Patatian additionally recommended four customers to surrender existing variable annuity policies and as a result of his failure to understand the possible adverse financial consequences of the surrenders, the customer’s incurred taxes and surrender fees, as alleged in the complaint.
Between 2017 and 2018, Patatian also allegedly recommended six unsuitable variable annuity exchanges as a result of his failure to understand the consequences of the exchanges which included an increase cost of the new variable annuities and the possibility of a return of premium death benefit, the complaint states.
Furthermore, between 2013 and 2016 Patatian allegedly recorded inaccurate customer information on the firm’s customer account and disclosure forms including overstating customers’ net worth and exaggerating customers’ years of investment experience, as alleged in the complaint.
The complaint further alleges Patatian inflated the customer’s net worth on the firm’s REIT paperwork in order to evade the limits even though the state of California and REIT issues limit the total purchase of a REIT to ten percent of the customer’s net worth.
Investors who are concerned they may have lost money while Mike Patatian was employed with Western International Securities may contact attorney Alan Rosca or his colleagues for a free case evaluation and discussion of potential options by calling 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
Several Patatian Investors Were Reportedly Paid Settlements
According to Patatian’s FINRA Brokercheck page, three investors were paid settlements between 2008 and 2017.
In September 2017, a customer was issued a settlement to the tune of $30,000 on allegations of bad advice. Another customer received a settlement in July 2016 to the tune of $492.35 on allegations of being improperly informed about investment risk and product details. Lastly, another customer was paid a settlement to the tune of $8,786.30 in September 2008 on allegations of suitability.
Megurditch Patatian Was Registered with FINRA for 21 Years
Patatian joined the securities industry in 1999 and switched employers five times according to his Brokercheck page.
Patatian was allegedly permitted to resign from Newbridge Securities Corporation in March 2020 on allegations of failure to disclose arrest information during the pre-hire process.
He was recently employed with Supreme Alliance from May 20209 until March 2021. He was also employed with Western International Securities located in Westlake Village, California from April 2013 until April 2019.
From March 2004 through April 2013, Mike Patatian was employed with Cuso Financial Services located in Granada Hills, California. He was allegedly permitted to resign from the firm on allegations of failure to follow firm policy with regards to firm transaction documentation, as reported on his Brokercheck page.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Potential Options for Mike Patatian Investors
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or broker misconduct and is currently investigating conduct related to previously registered Western International Securities broker Megurditch Patatian’s alleged unsuitable investment recommendations.
The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related to Megurditch Patatian on the allegation of unsuitable investment recommendation may contact attorney Alan Rosca or his colleagues for a free case evaluation at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.