December 4, 2017 – An AWC was issued in which Bataille was fined $5,000, suspended from association with any FINRA member in all capacities for 10 business days, and required to pay $2,200, plus interest, in disgorgement of commissions received. Without admitting or denying the findings, Bataille consented to the sanctions and to the entry of findings that he recommended the purchases of convertible notes without a reasonable basis to conclude they were suitable for any investor. The findings stated that at the time Bataille recommended and sold the notes, he had performed very minimal due diligence and did not know whether information provided by the issuer was accurate. Bataille also recommended and sold the investment while his member firm’s due diligence was ongoing. Bataille recommended and sold $50,000 of the notes to a customer of the firm, who was an accredited investor. For this investment, Bataille received $2,200. The suspension was in effect from January 2, 2018, through January 16, 2018. (FINRA Case #2014041862704). Bataille has been affiliated with Spencer Edwards, Inc. since 1999.
In a related matter, the Securities and Exchange Commission filed a complaint in the U.S. District Court for the Western District of Washington on December 4, 2017 against DONALD E. MacCORD, JR., SHANNON D. DOYLE, and DIGI OUTDOOR MEDIA, INC. (“DOM”). The SEC complaint alleges inter alia that the DOM securities offering was fraudulent and that in February 2015, Digi filed a registration statement with the Commission, seeking to sell shares of the company to the public. The registration statement painted a misleading picture for prospective investors about Digi’s ability to generate revenue, its financial condition, and its prospects for success. See, https://www.sec.gov/litigation/complaints/2017/comp24001.pdf.