UPDATE! DAVID PATRICK THOMAS ARRESTED
David Patrick Thomas of Bellingham, Washington Arrested
Have you lost money with financial advisor David Patrick Thomas of Bellingham, Washington? We are continuing to investigate allegations made against David P. Thomas that he was arrested for theft and securities fraud. According to the Bellingham Herald, Thomas stole more than $500,000 from numerous Whatcom County residents, mostly seniors, and used that money at casinos, restaurants, and elsewhere. In addition to defrauding Whatcom County residents, he was also alleged to have stolen from residents in Spokane, Washington; San Antonio, Texas; Brigham City, Utah; and Ashland, Oregon.
This follows allegations previously made by the Washington Securities Division against David P. Thomas. From March 2010 to October 2010, Thomas was alleged to have solicited at least 4 Washington investors to invest $335,000 in member interests and debentures (or bonds) issued by Chadbourn Partners LLC. The debentures of Chadbourn Partners LLC were purported to have 8.25% annual interest.
The Washington Securities Division alleged that David Thomas misrepresented the risks of the investments in Chadbourn Partners LLC. Thomas failed to tell investors that Chadbourn Partners LLC’s predecessor, Chadbourn Securities, Inc. had been the subject of two NASD investigations in 2001 and 2003. The Washington Securities Division also alleged that these investments were not registered securities, and that Thomas did not have permission from his brokerage firm, SII Investments Inc., to sell the investments in Chadbourn Partners. It appears that investors have lost significant money in Chadbourn Partners LLC.
David Patrick Thomas was a financial advisor and registered representative of SII Investments from September 2007 to December 2010. He worked at a branch office in Bellingham, Washington. Thomas had filed for bankruptcy both in 2000 and 2009. He was also the subject of two tax liens during 2009, and two customer complaints as well. Thomas was also affiliated with Thomas & Company Wealth Management and Insured Income Solutions.
Brokerage firms like SII Investments have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies, such as refraining from selling investments and securities that are not approved by the firm. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Bellevue, Washington; Vancouver, Washington; Denver, Colorado; and Ann Arbor, Michigan. We represent investors in court and FINRA arbitration proceedings in all 50 states, including investors from Western Washington (including Whatcom County, Ferndale, and the Bellingham area) and the Seattle area. We have previously represented over 1,000 investors, including investors against SII Investments. All of our arbitration cases are taken on a contingent fee basis, meaning you do not pay unless we recover money for you.
Click to view: Thomas, WA AWC
Click to view: Thomas, David BrokerCheck 2.3.15
HAVE YOU LOST MONEY WITH DAVID THOMAS OR SII INVESTMENTS?
Aaron Israels: (720) 599-3505
David Neuman: (206) 795-5798
Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.