Steven Roland Knuttila of Pernam Minnesota a stockbroker formerly registered with Capital Financial Services Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Knuttila failed to cooperate with a FINRA investigation into allegations of his unsuitable investment recommendations. Letter of Acceptance Waiver and Consent No. 2017052705601 (June 19, 2018).
According to the AWC, in December 2017, Capital Financial Services Inc. notified FINRA that Knuttila would be terminated from employment at the end of the year. Prior to that point, in November 2017, an investigation had been launched by FINRA into Knuttila’s possible unsuitable recommendations. The AWC stated that a request had been sent to Knuttila from FINRA on May 10, 2018, in which Knuttila was asked to provide recorded testimony for FINRA personnel. Evidently, Knuttila acknowledged with FINRA in May of 2018 that he received FINRA’s request for his testimony but would not participate in FINRA’s investigation. Consequently, FINRA found that Knuttila’s conduct was violative of FINRA Rules 2010 and 8210, resulting in his automatic bar.
This is not the first time that Knuttila has been subject of a regulatory action for committing misconduct. Particularly, Knuttila was fined $40,000.00 and barred by Minnesota Department of Commerce from offering or securities according to a Consent Order containing findings that Knuttila breached his fiduciary duties and made omissions, misrepresentations and unsuitable recommendations to customers concerning real estate investment trust, equipment leasing and variable annuity products; conduct violative of Minn. Stat. Sections 80A.68, 60K.46, 60K.43 as well as Minn. Rule 2876.5023. Case No. 46534 (Apr. 10, 2018).
Moreover, FINRA Public Disclosure reveals that Knuttila is referenced in twenty-two customer initiated investment related disputes containing allegations of his misconduct while employed with Questar Capital Corporation, Capital Financial Services Inc., Raymond James Financial Services, Inc. and Edward Jones. Particularly, on October 31, 2013, a customer initiated investment related complaint involving Knuttila’s conduct was resolved for $87,029.00 in damages based upon allegations that the customer was poorly advised concerning stocks. Subsequently, a customer initiated investment related arbitration claim concerning Knuttila’s activities was settled for $100,000.00 in damages supported by allegations that the customer was sold a real estate security without ever being apprised of the risks. FINRA Arbitration No. 14-02375 (Oct. 20, 2015).
Thereafter, on September 28, 2016, a customer filed an investment related complaint concerning Knuttila’s activities where the customer sought $70,000.00 in damages founded on allegations that inappropriate real estate security and variable annuity investment recommendations had been made to the customer. Another customer initiated investment related arbitration claim involving Knuttila’s activities was settled for $135,000.00 in damages based upon allegations that the customer was sold unsuitable alternative investments. FINRA Arbitration No. 17-00462 (Feb. 14, 2018). Moreover, a customer initiated investment related arbitration claim concerning Knuttila’s conduct was resolved for $250,000.00 in damages founded on allegations including breach of contract, breach of fiduciary duty and fraud. FINRA Arbitration No. 17-01352 (May 11, 2018).
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