William Henry Watson III, of Irvine, California, a stockbroker formerly registered with Finance 500, Inc., is the subject of a customer initiated investment related written complaint, which settled on February 15, 2017, for $161,653.66 in damages founded on allegations that Watson effected unsuitable direct investment product transactions with the customer’s funds.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Watson has been identified in five more customer disputes referencing allegations of Watson’s improper conduct. In particular, a civil action regarding Watson’s activities was settled for $100,000.00 based upon allegations that Watson, while employed with Strategic Equities Corp., made misrepresentations, breached his fiduciary duties, and committed fraud. Civil Action No. 91C7195 (Dec. 31, 1991).
On April 30, 1995, a customer initiated investment related written complaint regarding Watson’s activities was resolved for $15,000.00 in damages founded upon allegations of suitability concerning options transactions. Another customer dispute regarding Watson’s conduct was settled on July 17, 1995, for $27,500.00 based upon allegations of unsuitable options transactions having been executed in the customer’s portfolio. Then, a customer filed an investment related arbitration claim pertaining to Watson’s activities, where the customer requested $50,000.00 in damages supported by allegations that direct investment products were not appropriate for the customer. FINRA Arbitration No. 15-01038 (May 27, 2015).
Thereafter, a customer filed an arbitration claim regarding Watson’s activities, where the customer sought $102,500.00 in damages founded upon allegations of breach of contract, negligence, securities fraud, breach of fiduciary duty, and misrepresentation in regard to limited partnership interests and direct participation program products that the customer invested in while at Finance 500, Inc. FINRA Arbitration No. 16-03674 (Jan. 11, 2017).
Moreover, Watson has been fined $5,000.00 and suspended from associating with any FINRA member in any capacity based upon consenting to findings that he made faulty representations to customers pertaining to private securities offerings. Letter of Acceptance, Waiver and Consent, No. 2013038091901 (Dec. 15, 2015). According to the AWC, during the time that Watson was an investment banker at Finance 500, Inc., he took part in four issuers’ securities offerings, permitting the utilization of marketing materials that lacked balance and fairness, and failed to contain disclosures regarding the issuers’ struggling financial conditions. The AWC additionally stated that Watson permitted marketing materials to be used which omitted Fortune 500, Inc.’s relationship with the securities issuers. FINRA found that Watson’s conduct was violative of FINRA Rules 2010, 2210(d)(3), and 2210(d)(1)(A) and (B).
Guiliano Law Group
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