Rita Mansour, of Toledo, Ohio, a stockbroker registered with McDonald Partners LLC, was the subject of a customer initiated investment related Financial Industry Regulatory Authority (FINRA) securities arbitration claim that was settled for $60,000.00 in damages based upon alleged omissions of material fact and unsuitable recommendations in corporate and asset-backed bonds during the time that Mansour was associated with McDonald Partners LLC. FINRA Arbitration No. 24-00661 (June 24, 2024).
FINRA Public Disclosure shows that Mansour is referenced in five other customer initiated investment related disputes concerning Mansour’s conduct while associated with securities broker dealers. On October 12, 2021, a customer initiated investment related FINRA securities arbitration claim involving Mansour’s conduct resulted in the customer being awarded $160,000.00 in compensatory damages because McDonald Partners LLC was held liable on the customer’s claims which included breach of fiduciary duty, breach of contract, fraud, negligence, and violation of Ohio Securities Act. FINRA Arbitration No. 19-00440.
On December 10, 2020, a securities arbitration claim involving Mansour’s conduct was settled for $82,500.00 in damages based upon alleged omissions of material fact in connection with the sale of private securities when Mansour was associated with McDonald Partners LLC. FINRA Arbitration No. 19-02756.
On May 9, 2022, a securities arbitration claim involving Mansour’s conduct was settled for $175,000.00 in damages based upon the alleged failure to disclose material facts in connection with the sale of direct investments and private securities offerings. FINRA Arbitration No. 20-03621. On March 14, 2023, a different customer complaint involving Mansour’s conduct was settled for $262,500.00 in damages based upon alleged omissions of material fact about private placements.
Mansour was also referenced in a securities arbitration claim in which the customer requested $150,000.00 in damages based upon alleged omissions of material fact and unsuitable recommendations in private placements during the time that Mansour was associated with McDonald Partners LLC. FINRA Arbitration No. 24-00406 (February 29, 2024). The claim also alleged that the customers were not provided with documents or updates following their purchases.
Public Disclosure also shows that on December 10, 2021, Mansour was fined $40,000.00 and ordered by United States Securities and Exchange Commission (SEC) to cease and desist violating federal securities laws because, while at McDonald Partners LLC, Mansour failed to disclose material facts in connection with private securities offerings conducted by two pooled investment vehicles (PIVs). In the Matter of Rita Mansour, Order Instituting Cease and Desist Proceedings, File No. 3-20675.
According to the Order, the PIVs offered and sold securities to raise funds for the construction of a Montenegro resort. These offerings resulted in investor funds being used to buy debt in a company that was responsible for establishing the resort.
The Order stated that from 2013 to 2017, Mansour’s employer offered and sold at least $14,000,000.00 in securities issued by the PIVs to United States investors, including both securities broker dealer customers and investment advisory customers.
SEC stated that in October of 2016, Mansour learned of the alleged misappropriation of $488,331.00 in investor funds by someone at the Montenegrin company for personal expenses. SEC claimed that Mansour and her employer did not disclose the misappropriation to existing investors.
In 2017, $1,500,000.00 in additional funds were reportedly raised through sales of securities issued by PIV2 to investors, including the securities broker dealer’s customers, without any disclosure of the misappropriation. SEC alleged that Mansour recommended and sold some of these securities to customers. Therefore, Mansour caused her employer to violate Securities Act of 1933 Sections 17(a)(2) and (3) as well as Investment Advisers Act of 1940 Sections 206(2) and 206(4) and Rule 206(4)-8. Mansour was ordered to cease and desist from committing violations of those laws.
Mansour has been associated with McDonald Partners LLC in Toledo, Ohio, since September 15, 2006, as a stockbroker, and since September 25, 2006, as an investment advisor representative.
