Former Mutual Service Corp. Financial Advisor Frederick Atiyeh Has Four Customer Complaints Alleging Investment Loss
Frederick Atiyeh (CRD#: 872352) is a dually registered Broker and Investment Advisor at Crown Capital Securities, L.P., in Whitmore Lake, MI.
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.
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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.
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