William Nicholas Athas of Melville New York a stockbroker formerly registered with Worden Capital Management is the subject of a Financial Industry Regulatory Authority (FINRA) investigation in which the regulator has determined that Department of Enforcement should pursue disciplinary action against Athas for potentially churning investor accounts and for making unsuitable investment recommendations. Case No. 20180578831 (Sept. 14, 2020).
According to FINRA Public Disclosure, Athas potentially churned customer accounts in violation of Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5, FINRA Rules 2010 and 2020. In addition, Athas possibly neglected to have an adequate basis for concluding that his investment recommendations were suitable for customers in violation of FINRA Rules 2010 and 2111. The regulator also indicated that Athas may have overconcentrated customer accounts and inappropriately utilized margin in violation of FINRA Rules 2010 and 2111.
FINRA Public Disclosure confirms that Athas has been referenced in nine customer initiated investment related disputes containing accusations of his wrongdoing during the time that he was registered with Worden Capital Management, Seaboard Securities Inc., Liberty Partners Financial Services, Emmett A. Larkin Company Inc., JP Turner Company LLC, and KC Ward Financial.
Athas is the subject of a customer initiated investment related FINRA securities arbitration claim which was settled for $30,000.00 in damages supported by accusations that misrepresentations and omissions had been made by the stockbroker in regard to over-the-counter equities transactions at Liberty Partners Financial Services. According to the claim, there was a breach of contract between the customer and the securities broker dealer. The claim also alleges that unsuitable trades were made by Athas and that the customer’s account had been churned.
Another customer initiated investment related FINRA securities arbitration claim involving Athas’ activities was resolved for $10,000.00 in damages based upon allegations that Athas excessively traded and churned stock and over-the-counter equities in the customer’s Liberty Partners Financial Services account.
On February 22, 2018, an additional customer initiated investment related FINRA securities arbitration claim concerning Athas’ conduct was settled for $95,000.00 in damages founded on accusations that the customer was defrauded on over-the-counter equities transactions effected by Athas at KC Ward Financial. The claim alleges unauthorized, excessive and unsuitable stock trading which caused damages. According to the claim, the customer’s account was churned. Misrepresentations and omissions had been made by the stockbroker. Accusations also include Athas breaching a fiduciary duty to the customer. The claim also contains allegations of the violation of Texas State Securities Act and FINRA rules as it pertained to securities transactions at KC Ward Financial.
Athas is referenced in another customer initiated investment related FINRA securities arbitration claim where the customer requested $84,932.35 in damages supported by accusations of breach of fiduciary duty and negligent supervision at Worden Capital Management in regard to the customer’s equities transactions. FINRA Arbitration No. 20-01315 (May 4, 2020). The claim alleges that the customer’s account was churned and that they were defrauded between May 2, 2019 and April 23, 2020.
Athas was registered with Worden Capital Management between July 21, 2016 and August 25, 2020. Since August 24, 2020, he has been registered with SW Financial.