TDCI Revokes License of Franklin County Insurance Agent, Broker-Dealer

NASHVILLE –The Tennessee Department of Commerce & Insurance (TDCI) announces disciplinary action against former Tennessee licensed insurance producer and securities broker-dealer Scott B. Chitwood of Estill Springs (Franklin County).

A Consent Order, effective August 5, 2016, revokes Chitwood’s securities registration and insurance producer license and imposes a $1,000 civil penalty. The revocation stems from the discovery that Chitwood converted the securities of customers to insurance products (annuities) without adequate disclosures; unlawfully recorded inaccurate investment objectives in new account documents; failed to adequately disclose the surrender fees associated with some customers’ variable annuity purchases; and inaccurately represented to customers that the principals of their investments would be protected from loss.

“The TDCI Financial Services Investigations Unit is dedicated to stopping fraud and abuse,” said TDCI Assistant Commissioner for Securities Frank Borger-Gilligan. “We will continue to ensure that allegations of fraud committed by licensed Tennessee insurance and securities professionals are thoroughly investigated in order to protect the public.”

The Consent Order between TDCI and Mr. Chitwood can be found on the TDCI website. Tennesseans are encouraged to visit the Department’s website where they can inspect disciplinary actions and verify licenses of security and insurance professionals.

If you suspect that you might be a victim of securities or insurance fraud, or if you would like to file a complaint or speak with an investigator, please contact the Tennessee Securities Division – Financial Services Investigations Unit at (615) 741-5900, or to file a complaint online, please visit /commerce/article/securities-file-a-complaint.

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