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Written by 8:39 pm Blog, Current Investigations

Craig D. Dima Barred from Securities Industry

Financial Advisor Promissory Note Securities Litigation Representation, featured by Top Securities Fraud Attorneys, The White Law Group

Concerned about investment losses with financial advisor Craig D. Dima?

Have you suffered losses investing with Craig D. Dima? If so, The White Law Group may be able to help you recover your losses.

According to FINRA, Craig D. Dima (CRD#: 2314389 Ronkonkoma, NY) has been permanently barred from the securities industry this week. Dima was named a respondent in a FINRA complaint alleging that he made approximately 41 unauthorized sales of a company’s stock in the account of a senior customer.

The complaint alleges that to conceal this unauthorized trading, Dima made fraudulent misrepresentations and omissions to the customer. Dima allegedly told the customer that the sales were the result of computer issues, human error or statements to that effect, rather than his unauthorized trades.

FINRA further alleges that Dima routinely misrepresented to the customer that his member firm would reimburse her for the fees and commissions she paid in connection with the unauthorized stock sales and that the firm would restore to her account dividend payments that she was entitled to receive. The client was never reimbursed the customer for fees or commissions or repaid her the missed dividend payments as Dima allegedly promised.

These misrepresentations allegedly enabled Dima to conceal unauthorized trades and generated approximately $372,000 in additional revenues for Dima and his firm. The complaint also alleges that Dima also made unsuitable trades in the customer’s account.

Specifically, on occasions, Dima purportedly sold all, or substantially all, of the customer’s stock of the company, a “blue chip,” dividend-paying stock, and after waiting a short period, purchased the same company’s stock back in the customer’s account.

Dima’s alleged pattern of selling and then repurchasing the shares also was inconsistent with the customer’s desire to hold the company’s shares in her account as a long-term investment and as a means of generating dividends. Dima’s unsuitable recommendations allegedly resulted in harm to the customer, in that she: paid mark-ups/mark-downs and fees of approximately $376,000 for the stock trades; was deprived of approximately $127,000 in dividend payments; and suffered trading losses of approximately $72,000 from three of the round-trip sequences of the company’s stock transactions.

According to FINRA BrokerCheck, Craig D. Dima was registered with KC Ward Financial in Ronkonkoma, NY from 09/28/2009 through 02/21/2017. Dima has twelve disclosure events including five customer complaints listed on his Broker Report. Allegations include unsuitability and unauthorized trades.

For FINRA’s full findings see FINRA case # 2015046440701 

Failure to Supervise

Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.

When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.

Free Consultation

If you suffered losses investing with Craig D. Dima, the attorneys at The White Law Group may be able to help you. For a free consultation, please call (888) 637-5510.

The foregoing information, which is all publicly available, is being provided by The White Law Group.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For more information, please visit our website, www.whitesecuritieslaw.com.


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