Patrick Michael Egan, of Glendora, California, a stockbroker registered with Western International Securities Inc., is the subject of a customer initiated investment related Financial Industry Regulatory Authority (FINRA) securities arbitration claim in which the customer requested $50,001.00 in damages based upon allegations that Egan made misrepresentations of material fact in connection with the sale of corporate bonds of GWG Holdings Class L Bonds when Egan was associated with Western International Securities Inc. FINRA Arbitration No. 24-00380 (March 6, 2024).
FINRA Public Disclosure shows that Egan is referenced in three other customer initiated investment related disputes concerning Egan’s conduct while associated with securities broker dealers. On April 8, 2024, a customer initiated investment related FINRA securities arbitration claim involving Egan’s conduct was settled for $13,500.00 in damages based upon allegations that Egan made misrepresentation and the unsuitable investment recommendation of corporate bonds (GWG Holdings Class L Bonds) during the time that Egan was associated with Western International Securities Inc. FINRA Arbitration No. 23-01260.
On May 29, 2024, a FINRA securities arbitration claim involving Egan’s conduct was settled for $11,000.00 in damages based upon allegations that Egan was negligent and made misrepresentations of material fact in connection with the sale of corporate bonds. FINRA Arbitration No. 23-01859.
Egan is also referenced in a FINRA securities arbitration claim in which the customer requested $89,500.00 in damages based upon alleged misrepresentations about corporate bonds. FINRA Arbitration No. 23-03592 (December 20, 2023).
On June 15, 2022, Securities and Exchange Commission (SEC) brought a civil action against Egan based upon allegations that Egan violated Regulation Best Interest under Securities Exchange Act of 1934 Rule 15l-1(a) in connection with recommendations to customers to purchase GWG Holdings Class L Bonds. Securities and Exchange Commission v. Western International Securities Inc. et al., Complaint No. 2:22-cv-04119.
SEC alleged that Egan overlooked costs and risks associated with L Bonds. Between July 2020 and April 2021, Egan and others sold about $13,300,000.00 worth of the investments. They allegedly recommended these bonds to customers with limited investment experience, moderate risk tolerances, and other factors that made the recommendations unsuitable.
The Complaint alleged that Western’s policies lacked guidance for compliance with Regulation Best Interest and the securities broker dealer had inadequate procedures for enforcing these policies. As a result, SEC claimed that Egan violated Rule 15l-1(a)(1).
Egan has been associated with Western International Securities Inc. in Glendora, California as a stockbroker since January 22, 1998, and as an investment advisor representative since July 30, 2007.
