Frederick Mark Atiyeh, Broker with Crown Capital Securities, Facing Customer Disputes Alleging Overconcentration and Unsuitable Recommendations

INVESTORS: Crown Capital Securities broker Frederick Mark Atiyeh is facing two pending customer disputes alleging that he recommended unsuitable investment and made misrepresentations to clients.

Frederick Mark Atiyeh (CRD: 872352) is registered as a broker and investment adviser with Crown Capital Securities, where he has been employed since 1999. Previously, Atiyeh was registered as a broker with Mutual Service Corporation in 1999.

Atiyeh has four disclosures on his BrokerCheck report. 

August 2021 Customer Dispute

• Status: Pending
• Allegations: The customer alleges lack of proper due diligence, lack of suitability and over concentration in regards to investments in alternative and variable annuity products.

February 2021 Customer Dispute

• Status: Pending
• Allegations: The customer alleges misrepresentation of the risk factors in regards to the purchase of several alternative investments.
• Damage Amount Requested: $50,000.00

February 2019 Customer Dispute

• Status: Settled
• Allegations: It is alleged that from 2009 to 2016 the respondent breached its fiduciary duties to [REDACTED], as well as to [REDACTED] post September 2016, by constructing a portfolio that was over concentrated in high-risk, illiquid alternative investments and is also over concentrated in real estate assets. [REDACTED] further alleges the portfolio was not suitable for her late husband [REDACTED] and is not suitable for [REDACTED] now. In addition it is alleged that the respondent failed to supervise Mr. Atiyeh in regard to his suitability recommendations.
• Damage Amount Requested: $5,000.00
• Settlement Amount: $70,000.00
• Broker Comment: The clients were happy with my advice for over 30 years. When one client passed away, a daughter in law took over the financial matters and a small portion of slightly underperforming alternative investments were focused on, completely ignoring the gains from traditional investments over the years. In the end my firm settled the matter to avoid a costly hearing. I made no contribution to the settlement.

February 2017 Customer Dispute

• Status: Settled
• Allegations: Claimant alleges lack of adequate due diligence, negligence, misrepresentation, and breach of fiduciary duty relating to the purchase of UDF stock.
• Damage Amount Requested: $23,725.65
• Settlement Amount: $11,000.00
• Broker Comment: The investment in question was a small portion of a well balanced and diversified portfolio of stock and bond funds, real estate, and collateralized corporate loans. The clients other investments (401k) is comprised mostly of stock funds. The positions of the assets outside of Crown Capital accounts were taken into consideration when the portfolio design process was completed.

Contact Us Today

The Sonn Law Group is currently investigating allegations surrounding Frederick Mark Atiyeh. 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.