Did you lose money investing with William Athas (CRD# 3165470)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with William Athas. If you suffered losses investing with William Athas, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
As of January 13, 2023, William Athas’s FINRA BrokerCheck Report contains the following:
BARRED: FINRA has barred this individual from acting as a broker or otherwise associating with a broker-dealer firm.
Disclosure Events
9 Customer Disputes
1 Regulatory Event
1 Judgment(s)/Lien
February 7, 2022 – An Order Accepting Offer of Settlement was issued in which Athas was barred from association with any FINRA member in all capacities. Without admitting or denying the allegations, Athas consented to the sanction and to the entry of findings that he willfully violated Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder and violated FINRA Rule 2020 by churning customer accounts. The findings stated that Athas acted with intent to defraud or, at the very least, with reckless disregard of his customers’ interests, seeking to maximize his own compensation in disregard of the interests of his customers. Athas deliberately incurred unreasonably high trading costs in his customers’ accounts, which made it virtually impossible for the accounts to be profitable. Athas’ trading in the customer accounts caused approximately $1.1 million in losses, while Athas received substantial income from trading the accounts. Athas persisted in his trading activity even after being warned about the excessive level of trading and high costs in these customer accounts on several occasions. The findings also stated that Athas’ trading in the customer accounts was excessive and quantitatively unsuitable for each of the customers based on their investment profiles. This was evidenced by high turnover rates and cost-to-equity ratios, the frequency of the transactions and the transaction costs incurred. Athas’ trading resulted in cost-to-equity ratios ranging from approximately 56 percent to 246 percent and turnover rates ranging from approximately 17 to 75. Athas’ churning and excessive trading caused the customers to pay approximately $1.6 million in commissions and other trading costs. Conversely, Athas generated commissions of approximately $1.5 million for himself and his member firms. The findings also included that Athas failed to fulfill his reasonable basis suitability obligations. Athas failed to perform reasonable diligence to understand the cumulative costs of his trading, including commissions, other trading costs and margin interest. Athas also failed to perform reasonable diligence to understand the impact of these cumulative costs on the value of his customers’ accounts or the ability of his customers to earn a profit. In addition, Athas failed to understand turnover rates and cost-to-equity ratios and therefore failed to calculate and consider these metrics when recommending and executing a short-term, in-and-out trading strategy in his customers’ accounts. (FINRA Case #2018057883102)
Current and Previous Registrations
08/24/2020 – 12/22/2021 SW FINANCIAL (CRD#:145012) MELVILLE, NY
07/21/2016 – 08/25/2020 WORDEN CAPITAL MANAGEMENT LLC (CRD#:148366) Melville, NY
FINRA expelled the firm on 07/25/2022
12/11/2014 – 08/02/2016 K.C. WARD FINANCIAL (CRD#:145135) RONKONKOMA, NY
06/26/2014 – 12/18/2014 SECURITIES AMERICA, INC. (CRD#:10205) PORT JEFFERSON, NY
03/14/2013 – 07/01/2014 DALTON STRATEGIC INVESTMENT SERVICES INC. (CRD#:23485) PORT JEFFERSON, NY
08/17/2011 – 03/14/2013 CBG FINANCIAL GROUP, INC. (CRD#:6578) MELVILLE, NY
08/04/2011 – 08/12/2011 AEGIS CAPITAL CORP. (CRD#:15007) NEW YORK, NY
08/19/2010 – 08/03/2011 AVALON PARTNERS, INC. (CRD#:41357) HOLBROOK, NY
08/14/2006 – 08/24/2010 LIBERTY PARTNERS FINANCIAL SERVICES, LLC (CRD#:130390) HOLBROOK, NY
06/16/2006 – 08/03/2006 J.W. COLE FINANCIAL, INC. (CRD#:124583) HOLBROOK, NY
04/29/2004 – 06/21/2006 J.P. TURNER & COMPANY, L.L.C. (CRD#:43177) HOLBROOK, NY
05/03/2002 – 04/28/2004 EMMETT A LARKIN COMPANY, INC. (CRD#:6625) SAN FRANCISCO, CA
01/27/1999 – 05/17/2002 SEABOARD SECURITIES, INC. (CRD#:755) FLORHAM PARK, NJ
FINRA expelled the firm on 02/11/2011
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires broker’s to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokers and the brokerage firms they work for that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing with William Athas and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
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Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
