Steven Graham Subject of Six-Figure Dispute

Steven Graham (CRD #:1977736), a broker and investment advisor registered with Western International Securities, is the subject of an SEC investigation, according to his BrokerCheck record, accessed on April 6, 2023. Read on to learn more about his alleged conduct as a broker.

Investor Dispute

On February 13, 2023, an investor alleged that Steven Graham made misrepresentations and engaged in negligence. The client seeks $100,000 in damages in this pending dispute.

FINRA Rule 2020

The misrepresentation of information related to investments violates FINRA Rule 2020, which bans the use of manipulation, deception, and other fraudulent tactics to influence the purchase and sale of securities.

What qualifies as broker negligence?

Many types of broker misconduct may qualify as negligence, including recommendations of unsuitable investments, misrepresentations or omissions of material fact, and unauthorized trading.

Investors who feel their losses are the result of broker negligence may be able to recover their funds by pursuing FINRA arbitration. 

SEC Allegations 

On June 15, 2022, the Securities and Exchange Commission filed a civil suit alleging that Western International Securities and five of its brokers violated Regulation Best Interest with regard to recommendations of L Bonds offered by GWG Holdings.

L Bonds were allegedly unrated debt securities in the form of corporate bonds, and according to the SEC’s complaint, allegedly also high-risk, illiquid, and only suitable for investors with “substantial” financial resources. The relevant among these bonds allegedly paid fixed interest rates of 5.5%-8.5%, depending on their maturity period, which could be two, three, five, or seven years.

Between July 2020 and April 2021, Western International Securities allegedly recommended and sold $13.3 million in L Bonds to clients through Steven Graham and four other brokers. These brokers allegedly failed to conduct reasonable diligence in understanding the risks, costs, and benefits associated with these bonds and did not have a reasonable basis to believe their recommendations were in clients’ best interests.

Specifically, Steven Graham and the other defendants allegedly recommended L Bonds to seven clients with moderate to moderate-conservative risk tolerances, limited investment experience and net worth, and investment objectives that did not include speculation. Some of these clients were allegedly also retired.

Further, Western International Securities allegedly lacked sufficient policies and procedures to provide guidance to its brokers with regard to the Care Obligation of Regulation Best Interest.

The SEC alleges that Steven Graham violated Rule 15l-1(a)(1) of the Securities Exchange Act of 1934. This suit is currently pending.

Rule 15l-1(a)(1) of the Securities Exchange Act of 1934

Rule 15l-1(a)(1) of the Securities Exchange Act of 1934 requires brokerage firms to put their clients’ best interests first when recommending investments or transactions.

Background Information

Steven Graham has passed the following exams:

• Series 65 – Uniform Investment Adviser Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination
• Series 24 – General Securities Principal Examination
• Series 26 – Investment Company Products/Variable Contracts Principal Examination

He is a registered broker and investment advisor in 11 states.

Besides Western International Securities, Steven Graham has also worked with the following firms:

• J.P. Morgan Securities (CRD#:79)
• Chase Investment Services Corp. (CRD#:25574)
• Wamu Investments (CRD#:599)
• NyLife Securities (CRD#:5167)
• WM Financial Services (CRD#:599)
• PFS Investments (CRD#:10111)

Kurta Law Can Help

If you have worked with Steven Graham and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com 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.