Michael Murray Knittel (also known as Michael M. Lopez-Knittel), of El Dorado Hills, California, a stockbroker formerly registered with Fortune Financial Services Inc., has been fined $10,000.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings of Knittel’s selling away or engaing in private securities transactions when he was employed by Fortune Financial Services. Letter of Acceptance, Waiver, and Consent No. 2020067053001 (January 28, 2022).
According to the AWC, from June to August of 2018, four investors were advised by Knittel to invest in promissory notes issued by LLC 1. The AWC states that the investors were not customers of the securities broker dealer. The funds raised through the promissory note sales were meant for renovating residential fees and legal fees. Investors were due their principal investment plus a share of the profits on a property sale. The investors were able to meet the LLC 1 owner through Knittel, and they received documents and information from Knittel prior to investing. Knittel was compensated for his involvement in the investors’ transactions.
FINRA states that Knittel was prohibited under Fortune Financial Services’ policy from engaging in securities transactions away from the firm absent Knittel providing written notice beforehand. Knittel failed to get authorization from Fortune Financial Services as he never notified the firm in writing.
Knittel violated FINRA Rules 2010 and 3280 for selling away.
Knittel has been identified in two customer initiated investment related disputes containing allegations of his wrongdoing during the time that he was registered with Fortune Financial Services. FINRA Public Disclosure shows that a customer initiated investment related complaint regarding Knittel’s conduct was resolved for $25,000.00 in damages founded on accusations of inaccurate statements regarding the liquidity and safety of auction-rate securities transactions while Knittel was employed by Wachovia Securities.
On June 1, 2020, another investor filed a civil action concerning Knittel’s activities in which the investor sought compensatory damages supported by allegations of breach of contract, conspiracy, and negligence relating to direct investments, including direct participation program interests and limited partnership interests. The lawsuit alleges fraud during the time that Knittel was registered with Fortune Financial Services.
Knittel was associated with Fortune Financial Services between January 27, 2015, and December 31, 2021.
