FINRA’s Department of Enforcement initiated an investigation into Watson’s misconduct. Specifically, FINRA alleged Watson used PowerPoint presentations that contained inadequate risk disclosure and failed to provide a balanced presentation of the risks and rewards of an investment, as well as made misleading, unwarranted and unsupported statements. For example, for one of the issuers Watson failed to disclose the company’s negative financial performance or the risk of short-term lease amortization on the issuer’s assets. Finally, none of the presentations for the issuers disclosed Finance 500’s name, or described the relationship between Finance 500 and the issuer.
Based upon the foregoing alleged misconduct, FINRA asserted Watson violated FINRA Rule 2210(d)(1)(A) and (B), as well as FINRA Rule 2010. Specifically, FINRA Rule 2210(d)(1)(B) states: “No member may make any false, exaggerated, unwarranted or misleading statement or claim in any communication with the public. No member may publish, circulate or distribute any public communication that the member knows or has reason to know contains any untrue statement of a material fact or is otherwise false or misleading.” Here, Watson allegedly disseminated inaccurate and misleading marketing materials, thereby violating FINRA Rule 2210(d) and others.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment damages with Watson while he worked for Fortune 500, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation.