INVESTORS: Former Fortune Financial Services broker Michael Murray Knittel was suspended by FINRA following allegations he participated in a private securities transaction involving a $245,000 investment, without providing prior written notice to his member firm.
Michael Murray Knittel (CRD: 3274235) was registered as a broker with Fortune Financial Services from 2015 until 2021. Previously, Knittel was registered as a broker with J.W. Cole Financial from 2013 until 2015.
Knittel has three disclosures on his BrokerCheck report.
January 2022 Regulatory Judgment
Initiated By: FINRA
Allegations: Without admitting or denying the findings, Knittel consented to the sanctions and to the entry of findings that he participated in a private securities transaction involving a $245,000 investment, without providing prior written notice to his member firm. The findings stated that Knittel 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. Pursuant to the terms of the promissory note, the investors would receive repayment of their principal and a share of profits upon the sale of the property. Knittel introduced the investors to an owner of the company and provided the investors with information and documents about the investment, including a draft subscription agreement. After the investors invested, Knittel received $10,000 from the company. The investors, who later named Knittel in a pending investment-related civil action, expressed concern to him about the company and their investments. Knittel then sent the investors the $10,000 that he had previously received from the company.
Resolution: Acceptance, Waiver & Consent (AWC)
Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
Registration Capacities Affected: All Capacities
Duration: Four months
Start Date: 2/7/2022
End Date: 6/6/2022
June 2020 Civil Dispute
Initated By: Four Ws LLC, Deryk Walcott, Julie Walcott, Dan Wallcot and Tom Wilson
Allegations: Fraud, Negligence, Breach of Contract, Conspiracy
June 2008 Customer Dispute
Allegations: [Customer] alleges [they were] assured their investment was 100% safe and liquid. Alleges damages, usnpecified, but believed to exceed $5,000. (Account opened March, 2006)
Settlement Amount: $25,000.00
Broker Comment: This matter involves the sale of auction rate securities (ARS). The transaction(s) at issue took place before mid-February 2008, when the ARS market suffered widespread auction failures and illiquidity. The financial advisor did not cause, contribute or have any control whatsoever over these market events. The firm reached agreement with certain of its regulators, pursuant to which it repurchased ARS for their full par value from certain clients, including the instant client, whether they complained or not. The financial advisor was not a party to that agreement, did not make any payments to the client, and was not asked to and did not contribute to the repurchase amount. The settlement amount in item 11 above reflects the par value of the repurchased ARS, as required by FINRA Regulatory Notice 09-12.
January 2010 Customer Dispute
Allegations: Client opened an account with RR in March of 2008 and subsequently purchased three bank stocks at the recommendation of and after discussion with the RR – Regions Financial, Fifth Third Bancorp, and Bank of America – for a total of $98,314.70. Client alleges that these recommended securities were not suitable in light of his financial profile, risk tolerance, and investment objective. Securities in the account are valued at $41,630.00 as close of trading 1/22/10.
Damage Amount Requested: $56,684.70
Settlement Amount: $30,000.00
Broker Comment: [Customer] settled with NBC Securities for $30,000. Client did not pursue a claim against Mr. Knittel.
The Sonn Law Group is currently investigating allegations surrounding Michael Murray Knittel. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.