Brian Robert Mitchell Audit (2023) – A Scam or Legit Broker?

Brian Robert Mitchell  – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).

If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.

Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Brian Robert Mitchell.

BrokerComplaints.com is currently investigating allegations related to Brian Robert Mitchell. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.

About Brian Mitchell

Brian Robert Mitchell is an Investment Adviser. Brian Robert Mitchell’s Central Registration Depository (CRD) number is 1191608 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/1191608.

Click here to download a Detailed Audit Report for Brian Robert Mitchell.

Brian Robert Mitchell has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.

Accusations and Disclosures

You can find below, a quick snapshot of Brian Robert Mitchell’s regulatory actions, arbitrations, and complaints.

DISCLOSURE 1 – 

• Event Date: 5/20/2005
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA: 2005001017102
• DocketNumberAAO: 2005001017102
• Initiated By: NASD
• Allegations: SECTION 17(A) OF THE SECURITIES ACT OF 1933, SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER, NASD CONDUCT RULES 2120 AND 2110 – IN CONNECTION WITH THE OFFER, PURCHASE OR SALE OF SECURITIES, AND THROUGH THE MEANS AND INSTRUMENTALITIES OF INTERSTATE COMMERCE, INCLUDING THE MAILS, BRIAN MITCHELL, ACTING ON BEHALF OF HIS MEMBER FIRM: EMPLOYED A DEVICE, SCHEME OR ARTIFICE TO DEFRAUD; OBTAINED MONEY OR PROPERTY BY MEANS OF UNTRUE STATEMENT OF MATERIAL FACT OR OMISSION TO STATE A MATERIAL FACT NECESSARY TO MAKE THE STATEMENT NOT MISLEADING AND ENGAGED IN TRANSACTIONS, PRACTICES OR COURSE OF BUSINESS THAT OPERATE AS A FRAUD OR DECEIT UPON THE PURCHASER. SPECIFICALLY, MITCHELL ENGAGED IN A FRAUDULENT SCHEME, INVOLVING UNAUTHORIZED TRANSACTIONS AND UNAUTHORIZED USE OF MARGIN TO COVER MANY OF THE UNAUTHORIZED TRANSACTIONS THAT CAUSED THE ACCOUNT OF A PUBLIC CUSTOMER TO SUSTAIN MILLIONS OF DOLLARS IN LOSES. IN ADDITION, MITCHELL PREPARED AND ISSUED, OR CAUSED TO BE PREPARED AND ISSUED, TO THE TRUSTEES OF AN ACCOUNT FALSE AND FICTITIOUS ACCOUNT STATEMENTS, CONFIRMATION STATEMENTS AND FORMS 1099 OF THE INTERNAL REVENUE SERVICE, WHICH PURPORTED TO REPRESENT THE PERFORMANCE OF THE CUSTOMER’S ACCOUNT.
• Resolution: Decision & Order of Offer of Settlement
• Sanction Details :: Sanctions: Bar
• Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE HE IS BARRED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY.

DISCLOSURE 2 – 

• Event Date: 9/1/2004
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA: C10040094
• DocketNumberAAO: 10040094
• Initiated By: NASD
• Allegations: NASD MEMBERSHIP AND REGISTRATION RULE 1120(A), 1031(A) AND NASD CONDUCT RULE 2110 – FROM JULY 6, 2002 THROUGH OCTOBER 10, 2002, BRIAN ROBERT MITCHELL PERMITTED AN INDIVIDUAL TO ACT IN A CAPACITY THAT REQUIRED REGISTRATION WHILE THE INDIVIDUAL’S REGISTRATION STATUS WITH NASD WAS INACTIVE DUE TO HIS FAILURE TO COMPLETE THE REGULATORY ELEMENT OF THE NASD’S CONTINUING EDUCATION REQUIREMENT. FROM ON OR ABOUT DECEMBER 11, 2001 THROUGH AUGUST 10, 2004, MITCHELL PERMITTED AN INDIVIDUAL TO PARK HIS REGISTRATION WITH THE MEMBER FIRM. SPECIFICALLY, MITCHELL ALLOWED THE INDIVIDUAL TO MAINTAIN HIS REGISTRATION AS A GENERAL SECURITIES REPRESENTATIVE THROUGH HIS PURPORTED ASSOCIATION WITH THE MEMBER FIRM, WHEN IN FACT THE INDIVIDUAL WAS NOT ACTIVELY INVOLVED IN THE MEMBER FIRM’S SECURITIES BUSINESS OR OTHERWISE FUNCTIONING AS A REPRESENTATIVE OF THE MEMBER FIRM.
• Resolution: Acceptance, Waiver & Consent(AWC)
• Sanction Details :: Sanctions: Censure Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
• Regulator Statement: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS CENSURED AND FINED THE AMOUNT OF $14,000.00, WHICH IS JOINT AND SEVERAL. FINE PAID.

DISCLOSURE 3 – 

• Event Date: 8/10/2001
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA: C10010104
• DocketNumberAAO: 10010104
• Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
• Allegations: 08-16-01, NASD RULES 1120(A) AND 2110 – A MEMBER FIRM, ACTING THROUGH MITCHELL, PERMITTED ANOTHER INDIVIDUAL ASSOCIATED WITH THE FIRM TO ACT IN A CAPACITY THAT REQUIRED REGISTRATION WHILE HIS REGISTRATION STATUS WITH THE NASD WAS INACTIVE DUE TO HIS FAILURE TO COMPLETE THE REGULATORY ELEMENT OF NASD’S CONTINUING EDUCATION REQUIREMENT.
• Resolution: Acceptance, Waiver & Consent(AWC)
• Sanction Details :: Sanctions: Monetary/Fine
• Sanction Details :: Amount: $5,000.00
• Sanction Details: FINED $5,000, JOINTLY AND SEVERALLY

DISCLOSURE 4 – 

• Event Date: 1/26/1999
• Disclosure Type: Regulatory
• Disclosure Resolution: Final
• Disclosure Detail :: DocketNumberFDA: C07990003
• DocketNumberAAO: 07990003
• Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
• Resolution: Acceptance, Waiver & Consent(AWC)
• Sanction Details :: Sanctions: Monetary/Fine
• Sanction Details :: Amount: $10,000.00 Sanctions: Disgorgement/Restitution Sanctions: Censure
• Broker Comment: CENSURED AND FINED 1/26/1999

According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.

FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.

Previous Associations

Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.

• AUSTIN SECURITIES, INC. (CRD#: 17094) :: 11/19/1986 – 4/14/2005 :: FOREST HILLS, NY
• EQUICO SECURITIES, INC. (CRD#: 6627) :: 2/28/1986 – 1/29/1987
• THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES (CRD#: 4039) :: 2/28/1986 – 1/20/1987
• CIGNA SECURITIES, INC. (CRD#: 145) :: 11/6/1985 – 12/16/1985
• JOSEPHTHAL & CO., INCORPORATED (CRD#: 475) :: 10/10/1984 – 3/20/1985
• MORGAN, OLMSTEAD, KENNEDY & GARDNER, INCORPORATED (CRD#: 595) :: 4/27/1984 – 10/15/1984
• M V SECURITIES, INC. INC. (CRD#: 7201) :: 10/14/1983 – 3/14/1984

The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.

Legit or Not?

Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Brian Robert Mitchell, but not limited to)  can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.

Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.

There are 10 major types of complaints we receive against Investment Brokers –

• Outright Theft (Conversion of Funds)
• Unauthorized Trading
• Misrepresentation or Omission of Material Facts
• Excessive Trading (Churning)
• Lack of Diversification
• Unsuitable Investment Recommendations
• Failure to Disclose a Personal Conflict of Interest
• Front Running of Transactions
• Breakpoint Sale Violations
• Negligent Portfolio Management

Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet. 

How to Protect Yourself

We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.

Here are 5 signs that your broker needs to be reported –

• Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
• Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
• Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
• Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
• Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
• Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.

Report Brian Mitchell

In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.

Brian Robert Mitchell – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.

Click here to go to FINRA’s Online Complaint Form →

This form will ask you for specific information related to your complaint. Be prepared by gathering the following:

• Name and symbol for the investment product in question.
• The CRD number (1191608) for the broker – Brian Robert Mitchell
• Your complete contact information.

Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint.  Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.

The views and opinions expressed in these articles are those of the source BrokerComplaints.com and do not necessarily reflect the official position of ‘Ripoff Repairs LLC,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.

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