Mitchell S. Morrison (also known as Mitch Morrison), of Newport Beach, California, a stockbroker formerly registered with WestPark Capital Inc., has been fined $5,000.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Morrison engaged in private securities transactions or “selling away.” Letter of Acceptance, Waiver, and Consent No. 2021070397401 (December 22, 2023).
According to the AWC, between March of 2018 and December of 2020, he participated in ten separate private securities transactions, raising $462,500.00. The regulator stated that these activities were conducted without providing prior written notice to WestPark Capital Inc. and Skyway Capital Markets LLC, as required under FINRA rules.
The AWC stated that Morrison was involved with a financial technology company, referred to as Company A, where he held executive positions including CEO and President. Despite his executive role and management of Company A’s private offering of membership interests, Morrison failed to provide the required written notices to his securities broker dealer employers about his fundraising work for Company A. Therefore, FINRA found that he violated Rules 3280 and 2010.
FINRA Public Disclosure shows that on September 17, 2018, a customer initiated investment related FINRA securities arbitration claim involving Morrison’s conduct was settled for $5,000.00 in damages. The claim alleged that Morrison made misrepresentations of material fact in connection with the sale of private placements during the time that he was associated with Financial West Group. FINRA Arbitration No. 18-02519.
On June 17, 2022, WestPark Capital Inc. permitted Morrison to resign based upon allegations that Morrison had misrepresented his involvement in Eyeballs Financial. Supposedly, Morrison assured the firm that this activity would not involve raising money, leading to its approval. However, an investigation revealed that funds were raised, resulting in a 30-day internal suspension beginning June 1, 2022, and ultimately, his resignation.
Morrison was associated with WestPark Capital Inc. in Newport Beach, California from August 14, 2017, to February 20, 2019, and from August 31, 2020, to July 1, 2022. He was also associated with Skyway Capital Markets LLC in Tampa, Florida from February 4, 2019, to September 14, 2020.
