Financial Advisor Thomas Swan (Western International Securities) Customer Complaints

• April 19, 2022
• Western International Securities

Thomas Swan (CRD#: 1698430) is a dually registered Broker and Investment Advisor at Western International Securities, Inc. in Westlake Village, CA.

Broker’s Background

He entered the securities industry in 1987 and previously worked for Financial West Group; WM Financial Services, Inc.; Great Western Financial Securities, Corp.; SunAmerica Securities, Inc.; IFG Network Securities, Inc.; Sentra Securities Corp.; Planned Investments, Inc.; and First American National Securities, Inc.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in February 2022, the U.S. Securities and Exchange Commission opened an investigation into Thomas Swan, alleging, “Violations of certain provisions of the federal securities laws, including Rule 15l-1(a)(1), Rule 15l-1(a)(2) andSection20(a)of the Securities Exchange Act of 1934 (“Exchange Act”). The investigation is pending.

In addition, Thomas Swan has been the subject of three customer complaints, including the following:

• August 2020 — “Negligent Misrepresentation.” The customer dispute was settled for $110,000.
• August 2005 — “CA INSURANCE DEPT. ALLEGED BREACH OF FIDUCIARY RESPONSIBILITY EVEN THOUGH SUNAMERICA DENIED CLAIM.” The California Department of Insurance sanctioned Thomas Swan with a monetary fine of $20,000 and instructions for disgorgement and restitution.
• July 2002 — “ALLEGES PRODUCT WAS SOLD IN VIOLATION OF CALIFORNIA INSURANCE LAWS.” The customer dispute was denied.

For a copy of Thomas Swan’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.