Chad T. Mackland of Council Bluff Iowa a stockbroker formerly registered with MML Investors Services has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that Mackland neglected to provide information and documents to FINRA when it investigated him for accusations of fraud. Letter of Acceptance Waiver and Consent No. 2020065534801 (Mar. 23, 2021).
According to the AWC, on September 18, 2018, FINRA received notice from MML Investors Services that Mackland had been terminated as stockbroker. In the securities broker dealer’s Form U5, it noted that Mackland purportedly misrepresented information relating to customers’ traditional life insurance policies. In January 2021, FINRA received an amended Form U5 from MML Investors Services who revealed that Mackland was facing criminal charges for fraudulent sales practices and theft.
On August 29, 2020, Mackland was charged in the District Court of Pottawattamie County Iowa with two counts of fraudulent sales practices, both of which are felony offenses in Iowa. He has also been charged with one count of theft by deception which is another felony offense. Criminal Action No. FECR163322.
On January 27, 2021, Mackland was asked by the regulator to provide documents and information for purposes of its investigation. Mackland was required to comply with these requests under FINRA Rule 8210 as the regulator evaluated whether he engaged in fraudulent sales practices and theft.
The AWC stated that Mackland was permitted to provide the documents and information no later than February 24, 2021. But on February 23, 2021, FINRA received confirmation from Mackland’s legal counsel that Mackland would not cooperate with its investigation. No documents or information had been provided by the stockbroker. Mackland violated FINRA Rules 2010 and 8210 for this reason.
FINRA Public Disclosure also reveals that Mackland is the subject of a customer initiated investment related FINRA securities arbitration claim where the customer sought $2,871,000.00 in damages based upon allegations that during the period that Mackland was associated with Northwestern Mutual investment Services (NMIS) and MML investors Services, he made misleading statements to the customer and had breached a fiduciary duty as it pertained to their accounts. FINRA Arbitration No. 20-01193 (Apr. 16, 2020).
According to the claim, unsuitable investments including annuities and insurance products had been recommended to the customer. The claim also alleges that fraudulent representations were made by the stockbroker and that the customer’s account had been churned at MML Investors Services and Northwestern Mutual Investment Services.
Mackland was terminated by Northwestern Mutual Investment Services on August 1, 2016 when he became the subject of an internal investigation.
Between December 12, 2018 and February 25, 2020, the stockbroker was registered with Lion Street Financial LLC.
