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Written by 2:48 pm Current Investigations, Securities Fraud Articles

Latest News: Dawn Bennett

Dawn Bennett

Investment Losses with Dawn Bennett

Have you suffered losses investing with Dawn Bennett? If so, The White Law Group may be able to help you recover your losses through FINRA arbitration.

Investment adviser , Dawn Bennett, who was barred from the securities industry and fined $4 million in July by an administrative law judge for consistently lying about her firm’s assets and investment prowess, is appealing the ruling before the Securities and Exchange Commission while fighting the SEC legal process in federal court.

The SEC’s allegations in the case against Dawn Bennett include:

– that Bennett attempted to attract new customers by overstating — in submissions to Barron’s and repeatedly on a radio show Bennett hosted called “Financial Myth Busting with Dawn Bennett.”

– that Bennett misrepresented the assets she managed to Barron’s which led Barron’s to list Bennett as No. 5 on its 2009 list of the Top 100 Women Financial Advisers and rank the firm second in its list of the 2011 Top Advisers in D.C.

– that former clients of Bennett’s lost millions of dollars after investing with her firm.

According to Bloomberg BNA, Bennett  is claiming that the way the agency’s administrative law judges are hired violates the Appointments Clause. The district court denied Bennett’s bid to halt the administrative case pending resolution of the constitutional question, and the SEC is asking the Fourth Circuit to uphold the decision on October 28.

Latest News on Dawn Bennett

The White Law Group continues to investigate the Dawn Bennett case.  In November 2016, FINRA  filed a complaint alleging that Bennett sold $6 million in promissory notes involving her retail clothing business,  DJBennett.com owned by DJB Holdings, LLC.

FINRA ‘s recent complaint alleges Bennett, while associated with Western International Securities, Inc., had a retail clothing business called DJBennett.com owned by DJB Holdings, LLC.  FINRA found that during 2015 Bennett sold approximately $6 million in DJB convertible notes and promissory notes guaranteed by DJBennett.com, to approximately 30 investors. FINRA also uncovered evidence that Bennett may have misappropriated investors’ money, committed fraud, and engaged in undisclosed outside business activities and private securities transactions.

Proper Supervision of Advisors

Brokerage firms are required to properly supervise all advisors they employ and to ensure that those advisors are complying with applicable FINRA rules and regulations.  If these allegations can be proven and if it can be demonstrated that Bennett’s former employer failed to properly supervise her, her employer may be held responsible for the losses in a FINRA arbitration claim.

According to her FINRA BrokerCheck, Dawn Bennett was registered with WESTERN INTERNATIONAL SECURITIES, INC from October 2009 through December 2015 and with Royal Alliance from February 2006 through October 2009.

If you suffered losses investing with Dawn Bennett and would like a free consultation to discuss your litigation options, please call The White Law Group at 1-888-637-5510.

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 on the firm and its representation of investors, visit https://whitesecuritieslaw.com.

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