The White Law Group is investigating potential securities claims involving Fortune Financial Services (CRD#: 42150, Monaca PA).   

Fortune Financial Services, a mid-sized broker-dealer based in Monaca, Pennsylvania reportedly has four regulatory events on their broker profile, according to FINRA, the self-regulator that oversees brokers and brokerage firms. According to reports, the firm had revenue of $21.2 million in 2020.  

Fortune Financial Services – Broker Misconduct and Customer Complaints   

There have been several cases of registered representatives employed by Fortune Financial Services who were allegedly involved in broker misconduct and fraudulent activities.  

In April 2022, FINRA reportedly suspended advisor Michael Murray Knittel from the securities industry for four months after allegations that he participated in a private securities transaction involving a $245,000 investment without providing prior written notice to his member firm, Fortune Financial Services.    

Knittel allegedly recommended that investors invest in a promissory note issued by a limited liability company to fund the renovation of a residential property and to pay for legal fees associated with renegotiating an existing lien on the property.  

The investors would allegedly receive repayment of their principal and a share of profits upon the sale of the property, according to FINRA.  The investors then reportedly filed a civil suit against Knittel.  

According to a Placer County civil lawsuit (Case number S-CV-0046600) filed on April 23, 2021, four investors are suing Knittel and Lagunitas Asset Management and others for allegations of securities fraud involving an alleged real estate investment, Schmook Ranch LLC and purported investment losses.  

FINRA reportedly barred Jon Freeze of Canonsburg, Virginia, a broker with Fortune Financial, after he failed to provide information in an investigation.  His broker report indicates numerous complaints involving allegations of “Selling away. Mr. Freeze requested and received funds to be invested in Alternative Energy Holdings, possibly a Reg D investment outside the scope of a limited purpose broker dealer.” The SEC filed charges against Freeze in 2021 for the same allegations. The charges are still pending, according to Freeze’s broker record. Freeze reportedly has 9 customer complaints on his record.  

In 2017, Fortune Financial Services advisor Michael Giokas, founder of Giokas Wealth Advisors in New York, was reportedly arrested on fraud charges.  

The U.S. Attorney alleged that Giokas stole $200,000 from one of his clients, allegedly leading his client to believe the $200,000 would be placed in an investment that would yield an 8 to 9 percent return. Giokas reportedly pled guilty in 2019 facing twenty years in prison. Giokas reportedly has 10 customer complaints on his record.  

All broker-dealers have a responsibility to adequately supervise their employees. They must ensure the necessary procedures and systems to detect misconduct.  Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.   

When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.   

FINRA Censures and Fines Fortune Financial Services   

In February 2023, FINRA reportedly sanctioned Fortune Financial Services in connection with variable annuity recommendations.  The firm was reportedly censured and fined and ordered to pay restitution.  

From July 2016 through July 2021, Fortune’s supervisory system allegedly failed to achieve compliance with FINRA suitability requirements regarding the recommendation of variable annuities. The firm also purportedly failed to reasonably respond to red flags indicating unsuitable variable annuity recommendations.     

Fortune Financial purportedly failed to reasonably supervise a representative’s variable annuity exchange recommendations and failed to investigate or do anything about the red flags. Between July 2016 and July 2021, the rep allegedly recommended that customers exchange variable annuities without considering whether such transactions were suitable based on the high surrender charges that resulted from his recommendations. As part of these recommendations, 48 customers who purchased variable annuities and took short-term withdrawals, sometimes less than one year after purchasing the variable annuity, incurred $612,172.66 in surrender charges.      

In 2012, Fortune Financial Services was censured and fined $45,000 for transactions involving municipal securities without proper certifications. The firm also failed to implement proper supervisory procedures in connection with municipal securities transactions.  

Investigating Potential Claims    

Brokers and financial advisors may commit investment or securities fraud in an effort to control the market, gain business, or maximize commissions.     

All broker-dealers have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct.  Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.    

When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.     

Hiring a Securities Attorney    

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.       

Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.        

With over 30 years of securities law experience, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions attempt to recover their investment losses.        

Although our offices are in Seattle, Washington and Chicago, Illinois, the firm reviews securities fraud cases throughout the country.     

The foregoing information, which is all publicly available, is being provided by The White Law Group. The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois.   

If you have concerns regarding investments you purchased through Fortune Financial Services and would like to speak with a securities attorney, please call The White Law Group at 888-637-5510.   

For more information on The White Law Group, visit whitesecuritieslaw.com.