In November of 2022, Western International Securities was fined $400,000 and ordered to pay restitution of over $400,000 for failing to supervise a broker selling non-traded REITs. Megurditch “Mike” Patatian was barred by FINRA in June of 2022 for the over concentration and unsuitable sale of non-traded REITS. Mr. Patatian is currently appealing the FINRA hearing Panel decision.
Mr. Patatian was licensed with Western International Securities from April 2013 through April 2020. FINRA alleged that Mr. Patatian made unsuitable recommendations of non-traded REITS to his customers. This included over-concentration of the REITS, as well as recommendations to liquidate variable annuities to purchase the non-traded REITS.
Mr. Patatian had been “permitted to resign” by CUSO Financial Services in March of 2013 for failing to follow firm policy, just prior to joining Western International. Mr. Patatian had also been been terminated in 2004 by WM Financial Services for inconsistencies in his statements to a regional sales manager.
During his time period with Western International Securities Mr. Patatian sold over 7.8 million dollars in non-traded REITS. Over a third of his clients were over the age of 65 and the majority of Mr. Patatian’s commissions came from the sale of non-traded REITS.
Although non-traded REITS are high-cost illiquid products, Western International allowed for the concentration of these products in many accounts for retirees. FINRA found that Western missed various red flags in approving this business and failed to supervise Mr. Patatian.
Oakes & Fosher Can Help
Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Western International Securities or Megurditch “Mike” Patatian, please contact Oakes & Fosher for a free and private consultation. We handle cases on a contingency basis, which means there are no fees charged unless we collect for you.