FINRA

Respondent Witt failed to respond to FINRA request for information.

Letter

Bar (Permanent)

All Capacities

Indefinite

1/7/2019

Pursuant to FINRA Rule 9552(h) and in accordance with FINRA's Notice of Suspension and Suspension from Association letters dated October 3, 2018 and October 29, 2018, respectively, on January 7, 2019, Witt is barred from association with any FINRA member in any capacity. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in any capacity.

Verbal allegations for unsuitable investment recommendation and poor diversification beginning in June 2015.

$126,000.00

$50,000.00

Customer alleges losses in account in 2015 and 2016 were due to a large portion of account held in one stock and that as account declined, representative tried to make up for losses by frequent buys and sells without his consent.

$246,230.00

$100,000.00

The statement of claim states that the client received unsuitable investment recommendations. Other allegations include unsuitable extension of margin credit, unauthorized trading, financial elder abuse, common law fraud, and failure to supervise.

$190,000.00

$115,000.00

Customer alleges high commission, market loss, and investments were not conservative as requested. Activity occurred Nov. 2014 to Oct. 2016.

$34,043.18

$27,500.00

Allegations include high commission, risky investment strategy, continued loss in account value. Accounts opened in April 2015 and closed in October 2016.

$50,643.66

$19,000.00

Customer allegations include unsuitable investments, misrepresenting investments as conservative, and purchase and sales in account without consent and full understanding. Account established in May 2016 and closed in October 2016.

$19,451.00

$15,000.00

Voya Financial Advisors

Permitted to Resign

Representative conducted transactions in an account without speaking to and obtaining the consent of a party authorized to transact in the account.

Client alleges poor investment recommendations, high-risk margin trading, and lack of good diversification.

$26,560.88

$3,674.65

Clients allege that advisor made high risk investment decisions resulting in loss; he did not follow instructions to invest in a conservative manner; poor diversification; used margin inappropriately; and unsuitable annuity recommendation.

$55,685.00

$14,530.15

The clients allege the representative gave them poor advice and explanations regarding their investments.

$2,163.49

$78,324.80

Tax

INDIANA

RESPONDENT HAS ALLEGEDLY BEEN CONDUCTING INVESTMENT ADVISERY SERVICES IN INDIANA PRIOR TO REGISTRATION WITH THE STATE OF INDIANA.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$5,000.00

Disgorgement

RESPONDENTS TOOK ACTION TO BECOME REGISTERED WITH THE INDIANA SECURITIES DIVISION LAST ON DECEMBER 10, 2012. THE DIVISION AND RESPONDENTS DISAGREE OVER WHETHER RESPONDENTS COMPLETED ALL NECESSARY STEPS OF THE APPLICATION PROCESS.

CUSTOMERS EXPRESSED CONCERN REGARDING A SIGNIFICANT LOSS OF VALUE IN THEIR ACCOUNT, THE AMOUNT OF FEES CHARGED, AND THE INVESTMENT STRATEGY EMPLOYED BY THE REPRESENTATIVE TO MANAGE THE ACCOUNT.

$20,000.00

ON 9/11/2011 THE CUSTOMERS' ALLEGATIONS WERE INVESTIGATED BY THE FIRM AND FOUND TO BE WITHOUT MERIT. AFTER FURTHER INQUIRY INTO THIS MATTER AND WITHOUT ADMITTING ANY LIABILITY OR WRONGDOING, THE FIRM ENTERED INTO A SETTLEMENT AGREEMENT WITH THE CUSTOMERS IN EXCHANGE FOR A RELEASE OF ALL CLAIMS. THE SETTLEMENT WAS MADE SOLEFLY FOR BUSINESS REASONS AND TO AVOID A LENGHTY AND COSTLY LEGAL PROCEEDING.

THE CLIENT ALLEGES THEY WERE NOT AWARE OF THE MANANGEMENT FEES ON THEIR MANAGED ACCOUNT. HE ALSO ALLEGES THE RR TOLD HIM THAT A PORTION OF HIS INVESTMENT FUNDS WERE INVESETED IN TAX-FREE BONDS WITH A RETURN OF 6.02% AND HAD NO RISK. THE FUNDS ARE ACTUALLY INVESTED IN MUTUAL FUNDS AND THE ACCOUNT HAS DECLINED IN VALUE. HE ALSO CLAIMS HE INSTRUCTED THE RR TO PLACE LIQUIDATIONS ON THESE POSITIONS ON 04/14/08 THAT WERE NOT FOLLOWED.

$116,792.50

THE CLIENT'S ALLEGATIONS WERE INVESTIGATED AND WERE FOUND TO BE WITHOUT MERIT. PROPER DISCLOSURE OF MANAGEMENT FEES WAS PRESENTED AT THE TIME OF THE SALE AND ACKNOWLEDGED BY THE CLIENT. CLIENT'S ALLEGED DAMAGE AMOUNT IS FOUND TO BE WITHOUT MERIT AS THE ACCOUNT VALUE (MINUS WITHDRAWALS) HAD ACTUALLY INCREASED (NOT DECREASED) WHILE THE REPRESENTATIVE WAS ON THE ACCOUNT. OUR INVESTIGATION ALSO FOUND THE ALLEGATIONS REGARDING THE BOND FUND TO BE WITHOUT MERIT AS PROPER DISCLOSURE AND EXPLAINATION OF THE RISKS AND REWARDS OF SECURITIES INVESTMENT WERE GIVEN AT THE TIME OF SALE.