Bill Tatro and Mary Helen Caprice Mallett Accused of Selling Unsuitable Private Placements Securities Part II

This post continues our investigation into the recent bar of broker William (Bill) Tatro by the Financial Industry Regulatory Authority (FINRA) and his relationship with Mary Helen Caprice Mallett (Mallett), Tatro’s wife, colleague, and business partner.

Mallett has also had a large number of customer complaints initiated against her.  Mallett’s BrokerCheck reveals that she was associated with First Allied at roughly the same time as Tatro.  Thereafter, from September 2010 until May 2011, Mallett was associated with Morgan Stanley Smith Barney (Morgan Stanley).  From 2011 until June 2013, Mallett was associated with Independent Financial Group, LLC.  Mallett is also associated or is involved in Biltmore Wealth Advisors, LLC, Capital Financial Management, Ltd, South Race Street, LLC, Red Rock, LLC, Mango Lizard LLC, and EZ Plan LLC.

In April 2011, Morgan Stanley filed a Form U5 taking the position that Mallett “engaged in outside business activities without prior written approval of [Morgan Stanley] and facilitated clients’ relationships with an outside investment manager”, believed to be Tatro, “who was not approved by or affiliated with [Morgan Stanley].”  According to a lawsuit Morgan Stanley filed against Mallett she told Morgan Stanley that she and Tatro had used the same investment strategy over the previous nine years, presumably while associated with First Allied, and that she had bought Tatro’s book of business.  However, Morgan Stanley charged that Mallett had falsely told them Tatro was no longer servicing his former clients.

Mallett defended that “the allegations relate to a business relationship with Ms. Mallett’s spouse, which was disclosed to [Morgan Stanley] and was an essential part of her marketing plan” among other defending statements.  Mallett and Morgan Stanley arbitrated a claim over a $4 million firm advancement to Mallett that the firm wants her to pay back.

According to customers of Mallett, she used deception, false pretenses, false promises, and made misrepresentations and omitted material facts in steering clients into money losing real estate investments and other private placements and non-traditional ETF securities.  21 customer complaints have been filed against Mallett and she was involved in the settlement of 186 customer complaints together with Tatro.

The attorneys at Gana LLP are experienced in representing investors concerning claims involving the recommendation of private placements and other inappropriate securities.  Our consultations are free of charge and the firm is only compensated if you recover.