Western International Securities Review: Regulatory History, Complaints & Investor Claims
The White Law Group reviews the regulatory history of Western International Securities, a broker-dealer whose brokerage operations were absorbed into LPL Financial in 2024-2025. Investors who suffered losses due to unsuitable recommendations, supervisory failures, or broker misconduct while working with Western International may be eligible to recover damages through FINRA arbitration.
Western International Securities (CRD #39262) was an independent broker-dealer based in Pasadena, California, reporting approximately $3 billion in assets under management. Before its acquisition, the firm carried 18 disclosures on its FINRA BrokerCheck record, including 12 regulatory events, 5 arbitrations, and 1 civil event.
Update: LPL Financial Completed Its Acquisition of Western International Securities
On February 12, 2024, LPL Financial Holdings Inc. agreed to acquire Atria Wealth Solutions, Inc., the parent company of Western International Securities and six other broker-dealer subsidiaries: CUSO Financial Services, Sorrento Pacific Financial, Cadaret Grant & Co., NEXT Financial Group, SCF Securities, and Grove Point Financial. The deal, covering roughly 2,400 advisors and nearly $100 billion in client assets, closed on October 1, 2024.
Following the close, Western International’s brokerage and advisory accounts were converted onto LPL’s platform, and Western International Securities, Inc.’s own FINRA registration was terminated on October 13, 2025. The firm no longer operates as a standalone broker-dealer. Investors who worked with a Western International representative, including those researching accounts now serviced under LPL, may also want to review our LPL Financial complaints and regulatory history page for current information.
SEC Reg BI Case Over GWG L Bonds Reaches Resolution
In June 2022, the SEC charged Western International Securities and five of its brokers, Nancy Cole, Patrick Egan, Andy Gitipityapon, Steven Graham, and Thomas Swan, with violating Regulation Best Interest in connection with the sale of GWG Holdings L Bonds, an unrated, high-risk debt security, to retirees and other retail investors. From July 2020 through April 2021, Western International reportedly sold approximately $13.3 million in L Bonds. GWG Holdings filed for Chapter 11 bankruptcy in April 2022 after missing $13.6 million in bondholder interest payments.
Western International later consented to a final judgment permanently enjoining it from further Reg BI violations and requiring it to pay disgorgement of $34,468 plus prejudgment interest and a $160,000 civil penalty. The SEC established a Fair Fund under the Sarbanes-Oxley Act to return the collected funds to harmed investors; as of early 2026 the Fund held $327,280.52, and the court granted a distribution order on March 9, 2026.
FINRA Sanctions Western International for Excessive and Unsuitable Trading Supervision Failures (2024)
According to a letter of acceptance dated July 30, 2024, Western International agreed to FINRA sanctions for supervisory failures. From January 2016 to June 2020, the firm failed to maintain a supervisory system, including written supervisory procedures, reasonably designed to comply with FINRA Rule 2111’s suitability requirements concerning excessive trading.
The oversight failure allowed potentially excessive and unsuitable trading in approximately 100 accounts. Between January 2016 and December 2019, trading in nine customer accounts by four representatives produced an average cost-to-equity ratio of 30%, an average turnover rate of 8, and more than $2.5 million in trading costs. Western’s conduct violated FINRA Rules 3110 and 2010. The firm was censured, fined $475,000, and ordered to pay restitution of $1,057,632.70 plus interest.
Compliance Officer Failures at Western International
Two individuals who held supervisory roles connected to Western International were separately sanctioned by FINRA for compliance failures:
Corey White served as Chief Compliance Officer at Western International after leaving Financial West Group in August 2017. A client filed a FINRA arbitration claim in February 2022 alleging Western International failed to supervise options trading in the client’s account. Without admitting liability, Western International paid $2,760,000 to settle the matter in April 2022. White was separately barred by FINRA from serving in a principal capacity in March 2021 over unrelated supervisory failures at his prior firm, Financial West Group.
Efrain Trujillo, a Western International representative, was reportedly terminated by the firm on October 26, 2021, after borrowing a combined $335,000 from nine customers in violation of firm policy and falsely denying the loans on compliance questionnaires. FINRA fined Trujillo $5,000 and suspended him from October 17, 2022 through June 16, 2023. According to his BrokerCheck report, he has been barred from working in the securities industry.
Broker Misconduct Cases Linked to Western International
Dawn Bennett – $20 Million Ponzi Scheme (August 2019)
Former Western International advisor Dawn Bennett was sentenced to 20 years in prison after being convicted on 17 counts of securities fraud, wire fraud, and bank fraud following a two-week trial in Maryland. Prosecutors alleged Bennett used promissory notes to raise more than $20 million from at least 46 investors in her company, DJBennett.com. The White Law Group represented numerous Bennett clients in claims against Western International alleging failure to properly supervise her, negligent supervision, unsuitability, and failure to warn.
Anthony “Tony” Liddle – $1.9 Million Theft (January 2023)
The SEC filed charges against former Western International representative Anthony Liddle for allegedly stealing $1.9 million from clients between June 2019 and May 2022 through Prosper Wealth Management, LLC, an investment adviser he controlled. Liddle allegedly misrepresented the use of client funds and investment risks to at least 13 advisory clients, many of them seniors. FINRA barred Liddle in June 2022, and he was later sentenced to eight years in federal prison for wire fraud and money laundering. The White Law Group filed a claim against Western International on behalf of affected investors.
Clement Chichester and Brittney Sias – Elder Financial Abuse (December 2019)
Licensed insurance agents Clement Chichester and Brittney Jade Sias, formerly registered with Western International in Westlake Village, California, allegedly sold annuities to a 91-year-old former public-school teacher for large commissions, then convinced her to liquidate the policies to fund their own real estate investments. Chichester was convicted on multiple felony counts and ordered to pay $750,000 restitution, which he repaid in September 2019.
Dennis Mehringer Jr. – Unsuitable Mutual Fund Trading (October 2019)
Former Western International advisor Dennis Mehringer Jr. was barred from the securities industry following an investigation into unsuitable trading and other misconduct from January 2017 through May 2018. Mehringer allegedly recommended repeated short-term purchases and sales of 84 mutual fund Class A positions across five of a customer’s accounts. His BrokerCheck record reportedly lists 12 customer complaints alleging unsuitable investments, misrepresentation, fraud, and unauthorized trading.
Prior FINRA Sanctions Against Western International Securities
- November 2022: FINRA sanctioned Western International for alleged supervisory failures regarding non-traded REITs from 2013 to 2017, and for failing to timely report approximately 45 written customer complaints, arbitrations, and settlements between 2015 and 2022. The firm was censured and fined $400,000, plus restitution of $471,401.57 plus interest.
- January 2021: Western International entered an Acceptance, Waiver, and Consent agreement after executing opening transactions in stock options that caused a customer to exceed position limits for four consecutive business days, and for failing to maintain adequate supervisory procedures for option position limits. The firm was censured and fined $20,000 for violating FINRA Rules 2360, 3110(a) and (b), and 2010.
- May 2020: Western International agreed to sanctions after failing to amend Form U4 filings for more than 10% of its approximately 475 brokers to disclose liens, judgments, or bankruptcies totaling more than $5.6 million, despite receiving roughly 100 letters and 800 emails from FINRA flagging 52 registered representatives with unreported events. The firm was censured and fined $325,000 for violating FINRA Rule 2010.
- July 2019: FINRA censured and fined Western International $75,000 after finding that 40 customers were overcharged an estimated total of $305,000 on mutual fund transactions, and required the firm to remediate eligible customers.
- February 2018: FINRA censured Western International, fined the firm $125,000, and ordered $521,098.10 plus interest in restitution after finding the firm failed to establish and enforce a supervisory system reasonably designed to ensure recommendations of leveraged, inverse, and inverse-leveraged ETFs complied with securities laws and FINRA rules.
FINRA’s Supervision Rules and Why They Matter to Investors
All broker-dealers have a responsibility to adequately supervise their advisors, including maintaining procedures and systems to detect misconduct. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses caused by negligent supervision.
When brokers violate securities laws, such as by making unsuitable investment recommendations, the brokerage firm they work for may be liable for investment losses through FINRA arbitration. The Financial Industry Regulatory Authority operates the largest dispute resolution forum in the securities industry, and most brokerage account agreements contain mandatory arbitration clauses that route investor disputes through FINRA rather than the courts.
Class Action vs. Individual FINRA Arbitration
Investors weighing a class action lawsuit against an individual FINRA arbitration claim should consider the size of their losses. For losses larger than roughly $100,000, an individual arbitration claim is typically the better option. Class actions are generally better suited to large groups of investors with claims too small to pursue individually.
Hiring a FINRA Arbitration Attorney
The White Law Group represents investors in FINRA claims against their broker-dealers. If you suffered losses due to broker negligence or fraud involving Western International Securities, our firm can evaluate the strength of your case, draft a statement of claim, represent you at the arbitration hearing, and pursue settlement negotiations on your behalf.
If you have suffered losses with Western International Securities, call The White Law Group at 888-637-5510 for a free consultation.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
FAQs About Western International Securities
Is Western International Securities still in business?
No. Western International Securities was acquired as part of LPL Financial’s purchase of Atria Wealth Solutions, which closed October 1, 2024. Western International’s FINRA registration was terminated on October 13, 2025, and its accounts and representatives now operate under LPL Financial.
Can I still file a claim if my losses occurred while my account was at Western International?
Yes. Investors may still be able to pursue FINRA arbitration claims for losses that occurred while an account was held at Western International Securities, regardless of the firm’s subsequent acquisition, subject to FINRA eligibility rules and applicable statutes of limitation.
What types of investments led to complaints against Western International?
Complaints and regulatory actions involving Western International have frequently centered on non-traded REITs, GWG L Bonds, leveraged and inverse ETFs, excessive options trading, and short-term mutual fund trading, along with allegations of failure to supervise the brokers who recommended them.
How long do I have to file a FINRA arbitration claim?
FINRA generally applies a six-year eligibility rule from the occurrence of the events giving rise to the claim, though other statutes of limitation may apply. Investors should speak with a securities attorney promptly to evaluate potential deadlines.
