Dempsey Lord Smith – Regulatory Review and Broker Misconduct Complaints
The securities attorneys at The White Law Group are investigating potential claims involving brokerage firm Dempsey Lord Smith LLC (CRD#: 141238) in light of several regulatory actions and multiple investor complaints disclosed on FINRA BrokerCheck.
Dempsey Lord Smith LLC, headquartered in Rome, Georgia, is a FINRA-registered broker-dealer and investment advisory firm. As of this writing, the firm has six regulatory disclosures and multiple broker complaints, some involving complex and high-risk alternative investments.
FINRA Enforcement Actions: Dempsey Lord Smith
March 21, 2022 – FINRA Censure & Fine Related to GPB Capital Sales
According to a Letter of Acceptance, Waiver and Consent (AWC) issued by FINRA, Dempsey Lord Smith reportedly was censured and fined $70,000 for allegedly recommending unsuitable private placement investments in GPB Capital Holdings. The firm also failed to disclose that GPB Capital had not filed timely audited financial statements with the SEC, a critical omission that affected four investors. The firm was further ordered to pay $29,840 in restitution plus interest.
FINRA found that the firm violated Rule 2111 (Suitability) and Rule 2010 (Ethical Conduct) in connection with approximately $323,000 in GPB Capital sales.
Failure to Establish Escrow Accounts for Private Placements
In another FINRA action, the firm allegedly failed to establish escrow accounts as required for three private placement offerings. Instead, investors’ funds were directed to escrow accounts controlled by the issuer’s attorney. Additionally, FINRA cited the firm for distributing “unfair and unbalanced” sales materials via marketing emails. These actions were found to violate industry rules regarding supervision and communications with the public.
Illinois Department of Insurance – License Disclosure Violation
The Illinois Department of Insurance reportedly fined Dempsey Lord Smith after the firm responded inaccurately to a regulatory disclosure question during its application for a non-resident insurance license. The firm allegedly answered “no” to a question about prior regulatory actions, despite such disclosures existing on its record. The issue was resolved with a fine paid to the state.
Dempsey Lord Smith: Broker Misconduct & Customer Complaints
In addition to firm-level sanctions, multiple Dempsey Lord Smith representatives have been the subject of customer disputes and arbitration claims, including allegations of:
- Unsuitable investment recommendations
- Breach of fiduciary duty
- Negligence
- Misrepresentation
- “Selling away” of unauthorized private securities
Notable Broker Complaints with Allegations:
- Daniel Kistler (CRD#: 6203300) – Reportedly named in two customer disputes, including a pending claim filed in December 2023 alleging unsuitable, high-risk investments. A previous case settled in 2021 for $85,000.
- Gregory Gibson (CRD#: 1694647) – Reportedly named in multiple customer complaints alleging misrepresentation, unsuitable investments, and breach of fiduciary duty. One matter reportedly settled for $106,000 in 2024.
- Joel Goldberg (CRD#: 6590746) – Reportedly facing a pending complaint alleging unsuitable investments and even accountant malpractice.
- James Stockton (CRD #1801686) – Reportedly suspended after involvement in a case concerning “selling away”, where the advisor recommended $1.43 million in private securities that were not approved by the firm. He allegedly misrepresented the activity on internal compliance questionnaires.
FINRA Arbitration vs. Class Action – What are Your Recovery Options?
If you invested with Dempsey Lord Smith and suffered losses, you may have recovery options through FINRA arbitration, a private dispute resolution forum for investors. This is often a faster and more flexible alternative to a class action lawsuit, particularly when losses result from unsuitable investment recommendations or supervision failures by individual brokers.
Free Consultation
If you have concerns regarding investments with Dempsey Lord Smith or one of its registered representatives, the securities attorneys at The White Law Group may be able to help you recover your investment losses through a FINRA arbitration claim.
To learn more, please call (888) 637-5510 for a free consultation or visit www.whitesecuritieslaw.com.
FAQs
1. What types of investments were involved in the Dempsey Lord Smith regulatory actions?
Most prominently, the firm was cited for sales of GPB Capital private placements, which later faced scrutiny and regulatory intervention.
2. What does “selling away” mean?
“Selling away” refers to a broker recommending or selling securities not approved or supervised by their employing firm—often high-risk and unregistered.
3. How can I check if my broker has past complaints?
You can visit FINRA BrokerCheck to look up brokers and firms by name or CRD number.
