FINRA fined and suspended David Woods "Chip" Unsworth Jr., formerly of National Securities Corporation in San Francisco, California, for failing to disclose a private securities transactions involving shares Unsworth had personally received as compensation for other work from a firm FINRA expelled from the industry.
The findings indicate that Unsworth (CRD #1609040) and his registered investment advisor firm, Legend Merchant Group, Inc., received 450,000 shares of a stock issued by a private tech company as commission for work Unsworth performed related to capital raises.
When FINRA expelled Legend Merchant Group of San Francisco in 2012, Unsworth purportedly took the shares with him as he joined National Securities Corporation.
According to the report, while associated with National Securities Corporation, Unsworth sold approximately 229,000 of the shares without providing prior written notice of the sales to the firm.
With FINRA estimating that the 229,000 shares sold were worth $68,237.99, it follows that each of the shares was worth approximately 29 or 30 cents, approaching penny stock territory.
In 2015, FINRA sanctioned Unsworth for unethical communications with a customer regarding a complaint; allowing his firm, Legend Merchant Capital, to conduct business while the firm was under suspension for failing to satisfy annual financial filing requirements; failing to timely disclose tax liens; and failing to obtain FINRA pre-approval prior to issuing a loan.
Unsworth's BrokerCheck file lists a handful of tax liens, alongside several settled customer disputes that alleged excessive, unsuitable, and unauthorized trading; misrepresentation; and failure to supervise.
If you have invested with former National Securities Corporation broker David Woods Unsworth aka Chip Unsworth or with any broker or financial adviser who has failed to disclose private securities transactions or who has sold you unsuitable or unapproved microcap stocks or other securities whose performance or associated fees has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.