Kyle Chapman FINRA Suspends Foundations Investment Advisor

Henderson, Nevada financial advisor Kyle Chapman (CRD# 6303483) was recently sanctioned and suspended in connection with alleged rule violations. Financial Industry Regulatory Authority and Securities and Exchange Commission records show that the former American Trust Investment Services broker is currently registered as an investment advisor with Foundations Investment Advisors. He is also registered as an insurance representative with Asset Preservation Wealth & Tax.

Mr. Chapman’s BrokerCheck report discloses the FINRA disciplinary action against him. Filed in September 2024, it describes FINRA’s findings that he “willfully violated” the SEC’s Regulation Best Interest when he “recommended his customer invest $50,000 in a speculative, unrated debt security” even though the customer’s investment goals were not speculation but rather income and preservation of capital. “[Mr.] Chapman failed to perform reasonable diligence on the security before recommending it to the customer and did not conduct a reasonable review of the offering documents,” FINRA found, noting that he earned more than $1,400 in commissions from these recommendations and adding that he allegedly “made negligent misrepresentations and omissions of material fact when recommending the debt security to his customer.” In connection with these findings, FINRA issued him a fine of $5,000 and a three-month suspension from registering with any broker-dealer firm in any capacity.

His BrokerCheck report also discloses one investor complaint. Filed in August 2022, it alleges that as a representative of American Trust Investment Services, he breached contract, violated California securities law, breached his fiduciary duty, and engaged in promissory estoppel in connection with GWG L bond investments. The pending investor complaint alleges damages between $100,000 and $500,000.

According to the Financial Industry Regulatory Authority and the Securities and Exchange Commission, Kyle Chapman holds eight years of securities industry experience. Based in Henderson, Nevada, he has been registered as an investment advisor with Foundations Investment Advisors since 2023. His past registrations include Clarity Capital Partners, American Trust Investment Services, WestPark Capital, Erman Retirement Advisory, Cetera Advisor Networks, Larson Financial , and SagePoint Financial. His credentials include the passage of five securities industry qualifying exams: the Investment Company Products/Variable Contracts Representative Examination, or Series 6; the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; the Uniform Securities Agent State Law Examination, or Series 63; and the Uniform Combined State Law Examination, or Series 66. He is licensed as an investment advisor in Nevada. (Information current as of September 14, 2024.)

Carlson Law represents investors throughout the United States in claims against financial advisors and investment firms. If you or a loved one have suffered investment losses, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation.