Judge Upholds Denial of Franklin Man’s Financial Adviser Applications, Orders $5K Payment for Court Costs

Judge Upholds Denial of Franklin Man’s Financial Adviser Applications, Orders $5K Payment for Court Costs
Thursday, May 30, 2019 | 01:43pm

NASHVILLE The Tennessee Department of Commerce and Insurance’s (TDCI) Division of Securities announces a Nashville judge has upheld the denial of Franklin, Tenn. resident David Antypas’ investment-advisor and broker-dealer applications stemming from an investigation into a complaint  about Antypas’ earlier work as a financial adviser for an elderly Mt. Juliet woman. Additionally, Antypas must pay $5,000 in costs related to a court hearing held at his request about the matter.

Administrative Law Judge Leonard Pogue recently ruled in favor of TDCI’s 2018 denial of Antypas’ applications, finding that Antypas’ actions constituted dishonest and unethical business practices and violated T.C.A. § 48-1-112, including: Listing Antypas’ family members as beneficiaries on two of his client’s accounts; keeping an investment brokerage’s letterhead and change of beneficiary forms after Antypas’ termination from an investment brokerage; and charging fees to the Mt. Juliet woman that were higher than fees he charged other clients. Many of the exchanges between Mr. Antypas and his former client occurred at her assisted living facility in Mt. Juliet. More information about the ruling can be found here.

“Protecting Tennessee’s elderly and vulnerable adults is a goal shared by all our divisions,” said Tennessee Department of Commerce & Insurance Commissioner Julie Mix McPeak. “I urge Tennesseans to ask questions, educate themselves about their investment advisers and their investments, and contact our team with any questions, if they arise.”

To help you and your family avoid fraud and financial abuse, TDCI’s Divisions of Consumer Affairs and Securities provide the following tips:

  • Beware of high pressure tactics. Say no to any person who presses you to make an immediate investment decision. You need time to do your own research. Any ethical salesperson will understand this. Don't buy securities offered in unsolicited telephone calls or through cold calls. Ask for information in writing.
  • Good manners don't indicate personal integrity. Con artists are generally extremely polite, knowing that many of us equate courtesy with personal integrity. Swindlers are also counting on your good manners to keep you from cutting them off. Be skeptical of guarantees or promises of quick profits. Don't let your good manners land you in trouble; simply hang up if you don't like the conversation.
  • Watch out for salespeople who prey on your fears. It is common for swindlers to pitch their schemes as a way to eliminate your financial fears for the future. Be aware that fear and greed can cloud your good judgment. A guarantee of massive profits could be a danger signal. Remember: the higher the expected return, the higher the risk involved.
  • Check out the person touting investment deals. Tennessee law requires most securities to be registered or to have filed notice, in the case of federally covered securities. Also, the persons selling them are usually required to be registered at both the federal and state levels. Check on the registration requirements and registration status of any offerings, firms, and or individuals with the Tennessee Securities Division before you invest by calling toll free at 800-863-9117.