• December 11, 2021
• Crown Capital Securities

Frederick Atiyeh (CRD#: 872352) is a dually registered Broker and Investment Advisor at Crown Capital Securities, L.P., in Whitmore Lake, MI.

Broker’s Background

He entered the securities industry in 1979 and previously worked for Mutual Service Corporation; Titan/Value Equities Group, Inc.; IDS Marketing Corporation; IDS Life Insurance Company; and IDS Financial Services, Inc.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in August 2021, a customer dispute was filed against Frederick Atiyeh. The allegation states, “The customer alleges lack of proper due diligence, lack of suitability and over concentration in regards to investments in alternative and variable annuity products.” The customer dispute is pending.

In addition, Frederick Atiyeh has been the subject of three customer complaints, including one that remains pending, including the following:

• February 2021–“The customer alleges misrepresentation of the risk factors in regards to the purchase of several alternative investments.” Damages of $50,000 are requested, and the customer dispute is pending.
• February 2019–“It is alleged that from 2009 to 2016 the respondent breached its fiduciary duties to [REDACTED], as well as to [REDACTED] post September 2016, by constructing a portfolio that was over concentrated in high-risk, illiquid alternative investments and is also over concentrated in real estate assets. [REDACTED] further alleges the portfolio was not suitable for her late husband [REDACTED] and is not suitable for [REDACTED] now. In addition it is alleged that the respondent failed to supervise Mr. Atiyeh in regard to his suitability recommendations.” The customer dispute was settled for $70,000.
• February 2017–“Claimant alleges lack of adequate due diligence, negligence, misrepresentation, and breach of fiduciary duty relating to the purchase of UDF stock.” The customer dispute was settled for $11,000.

For a copy of Frederick Atiyeh’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.