Thomas Swan Allegedly Made Misleading Investment Recommendation

Thomas Swan (CRD #:1698430), a broker and investment advisor registered with Western International Securities, allegedly recommended an unsuitable investment, according to his BrokerCheck record, accessed on November 1, 2024.

Investor Disputes

On October 28, 2024, an investor alleged that Thomas Swan made a misleading and unsuitable investment recommendation. The client seeks $60,000 in this pending dispute.

On August 31, 2020, Thomas Swan was involved in an investor dispute alleging misrepresentation. The case was settled for $110,000.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles. These profiles describe an investor’s goals, age, risk tolerance, and other characteristics.

Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.

FINRA Rule 2020 

Misrepresentation deprives investors of the information they need to assess risks associated with a particular investment. FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations. Losses that can be attributed to a stockbroker’s material misrepresentations of facts may result in a viable securities arbitration claim for damages.

SEC Allegations 

On February 10, 2022, Thomas Swan was the subject of a United States Securities And Exchange Commission investigation alleging violated Regulation Best Interest with regard to recommendations of L Bonds offered by GWG Holdings.

The SEC alleged that Thomas Swan failed to exercise reasonable diligence in understanding the risks and costs associated with L Bonds and lacked a reasonable basis to believe these investments were in certain clients’ best interests.

The SEC further alleged that this misconduct violated Rule 15l-1(a)(1) of the Securities Exchange Act of 1934.

Securities Exchange Act of 1934

Rule 15l-1(a)(1) of the Securities Exchange Act of 1934 is part of “Regulation Best Interest” which requires brokerage firms to act in their customers’ best interests.

Sanctions

Thomas Swan was ordered to pay a disgorgement of $12,555 as well as other fines and penalties.

Background Information

Thomas Swan 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
• Series 6 – Investment Company Products/Variable Contracts Representative Examination
• Series 26 – Investment Company Products/Variable Contracts Principal Examination

Thomas Swan is a registered broker in Arizona, California, Washington, and Wisconsin. He is also a registered investment advisor in California and Arizona.

Besides Western International Securities, Thomas Swan has also worked with the following firms:

• Financial West Group (CRD#:16668)
• WM Financial Services (CRD#:599)
• Great Western Financial Securities Corporation (CRD#:14229)
• SunAmerica Securities (CRD#:20068)
• IFG Network Securities (CRD#:19948)
• Sentra Securities Corporation (CRD#:10249)
• Planned Investments  (CRD#:5066)
• First American National Securities  (CRD#:10111)

Kurta Law Can Help

If you have worked with Thomas Swan 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 that 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.