Michael Knittel Suspended By FINRA Following Selling Away Allegations
Michael Knittel (CRD #: 3274235), a broker formerly registered with Fortune Financial Services, is the subject of a FINRA suspension, according to his BrokerCheck record, accessed on April 15, 2022.
Keep reading for more details regarding his suspension.
Selling Away Allegations
According to an Acceptance, Waiver, and Consent agreement dated January 28, 2022, Michael Knittel consented to the findings that between June and August 2018, he participated in a private securities transaction involving a $245,000 investment, without providing prior written notice to his member firm.
According to the findings, Michael Knittel reportedly advised four investors to purchase a promissory note issued by a limited liability company called LLC 1. The investment would fund the refurbishment of a residential property and pay legal fees related to renegotiating an existing lien on the property. The investors would get repayment of their money as well as a share of the profits when the property sold.
Michael Knittel allegedly earned $10,000 from the company after he secured new investors. (The investors later initiated a civil action against Michael Knittel. After investors complained about their promissory notes and LLC 1, he allegedly sent the $10,000 to the investors.)
FINRA Rule 3280
FINRA Rule 3280 requires that a registered broker notify his or her member firm in writing prior to participating in any private securities transaction, outlining the proposed transaction and proposed role in detail. Additionally, the broker should disclose whether he or she has received or may receive commissions on the transaction.
A violation of FINRA Rule 3280 is also a violation of FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.
FINRA Suspension and Fine
As part of the terms of the AWC, Michael Knittel consented to a
- A four-month suspension
- A $10,000 fine
You can read a copy of the AWC here.
On June 1, 2020, Michael Knittel was named in a civil dispute alleging fraud, negligence, breach of contract and conspiracy.
Michael Knittel has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
Besides Fortune Financial Services, Michael Knittel has also worked with the following firms:
- J.W. Cole Financial (CRD#:124583)
- Financial Advisers Of America (CRD#:142170)
- RBC Capital Markets (CRD#:31194)
- Wachovia Securities (CRD#:19616)
- A. G. Edwards & Sons (CRD#:4)
Kurta Law Can Help
If you have been victimized after working with Michael Knittel, don’t hesitate to contact us today at 877-600-0098 or firstname.lastname@example.org for a free consultation.
For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.