FINRA fined and suspended WestPark Capital broker Mitchell Steven Morrison of Newport Beach, CA for selling securities away from associated firms WestPark Capital, and, later, Skyway Capital Markets. WestPark, which received its own fine and censure, previously suspended Morrison before filing an "employment separation after allegations" disclosure, writing that Morrison engaged in an outside business activity.
Mitchell Morrison (CRD #728484) created a financial technology company called Eyeballs Financial LLC and Eyeballs Advisors in 2018 and served as its CEO, according to his BrokerCheck file.
The findings state that Morrison solicited investors to purchase membership interests in a private offering, sold away from and without notifying WestPark or Skyway that he intended to raise funds for this outside business, according to FINRA. As a result, the findings state, Morrison failed to obtain written approval from either firm to sell membership interests in the outside company.
Furthermore, Morrison falsely denied participating in any private securities transactions over a three-year period on quarterly and annual compliance questionnaires, according to FINRA's review.
These unauthorized sales resulted in $462,5000 in membership interest purchases over 10 transactions, according to FINRA.
In addition to his termination from WestPark Capital in 2022, Morrison settled a customer dispute alleging misrepresentation in 2018.
Morrison's present employment is a firm called Fourstar Wealth Advisors, according to BrokerCheck. Morrison also served as a non-profit board member and founder of Financial Literacy Project in Irvine, California, and wrote a book called "Why Trump Won" in 2017 out of the same Newport Beach, CA address as Morrison's Eyeballs Financial and Eyeballs Advisors companies.
FINRA also disciplined WestPark Financial for failing to supervise registered representatives and for inadequate supervisory policies and procedures, ordering the firm to pay nearly $600,000 in fines and restitution after allegations of unsuitable trading.
Also of note is that Morrison has been associated with 23 firms over his 35 years in the securities industry, including two firms since expelled by FINRA. For more information about so-called cockroach culture, refer to this article.
If you invested with WestPark Capital broker Mitchell S Morrison or any investment adviser or representative who improperly sold away from their firm without authorization, resulting in losses, excessive fees, or other damages, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.