Securities Lawyers Blog
The securities attorneys at Gana Weinstein LLP represent investors in their disputes with brokerage firms, such as Dawson James Securities, Inc.. Our firm can analyze your accounts and investments in order to determine if there was any broker misconduct in the handling of your accounts. Our analysis can reveal whether an investor has been a victim of misconduct such as unsuitable investments, unauthorized trading, excessive trading, or investment fraud.
Dawson James Securities is an investment bank and broker-dealer that helps small and microcap public and private growth companies raise capital, mainly in the life sciences and healthcare, technology, and consumer sectors, offering investment banking, research, capital markets, syndicate, institutional sales and trading, insurance, and wealth management services. Formed in Florida in 2002 and registered with the SEC in 2004, the firm is headquartered in Boca Raton and serves growth companies, institutional clients, and individual investors.
Dawson James Securities, Inc. – By the Numbers:
- CRD #: 130645
- Regulatory Events: 12
- Arbitration Events: 3
- Broker Employees: 34
Dawson James Securities, Inc. – In the News:
FINRA v. Dawson James Securities, Inc. (Case #2020065100701) – From August 2011 through January 2021, Dawson James failed to preserve and review over 10,900 business-related text messages sent or received by at least 27 associated persons, including Keyser Jr. During this period, the firm’s supervisory system, including written supervisory procedures, was not reasonably designed to achieve compliance with the firm’s obligation to capture, retain, and review text messages. As a result, Dawson James violated Section 17(a) of the Securities Exchange Act of 1934, Exchange Act Rule 17a-4, NASD Rules 3010 and 3110(a), and FINRA Rules 3110, 4511, and 2010. Moreover, Keyser Jr. sent or received approximately 4,400 text messages relating to the firm’s securities business from August 2011 to December 2017, which the firm did not retain. During this period, Dawson James prohibited associated persons from communicating about securities business via text message. By causing Dawson James to maintain incomplete books and records, Keyser Jr. violated NASD Rule 3110(a) and FINRA Rules 4511 and 2010. Between December 2016 and March 2019, Dawson James also failed to establish and maintain a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with the firm’s obligation to conduct reasonable due diligence on private placement offerings. Accordingly, Dawson James violated FINRA Rules 3110 and 2010.
FINRA v. Dawson James Securities, Inc. (Case #2017052790301) – During the period June 2015 through April 2020, Dawson James charged customers excessive commissions on 236 transactions. As a result, the firm violated FINRA Rules 2121 and 2010.
FINRA v. Dawson James Securities, Inc. (Case #2018056290001) – Between August 21, 2017 and February 8, 2018 (the “Relevant Period”), Dawson James’ registered representatives called at least 49 telephone numbers that appeared on the national do-not-call (DNC) list, in violation of FINRA Rules 3230 and 2010.
FINRA v. Dawson James Securities, Inc. (Case #2015044393901) – From 2009 through 2016, the Firm had supervisory failures in two areas of its business: research and private offerings. These supervisory failures led to substantive rule violations in both areas. More specifically, during that timeframe, the Firm violated NASD Rule 2711(i) and FINRA Rules 3010(b) and 2010 when it failed to adopt and implement written supervisory procedures reasonably designed to ensure that its research analysts did not participate in efforts to solicit investment banking business and that its research reports contained all required disclosures. Dawson James also violated NASD Rule 3010(a)(5) and FINRA Rules 3110(a)(5) and 2010 when it failed to implement a reasonably designed system to supervise its research analysts. In particular, it allowed its Director of Research, who authored the vast majority of the Firm’s research and was also a research principal, to supervise himself. Substantive violations of NASD Rule 2711 and FINRA Rules 2241 and 2010 followed. Specifically, the Firm’s Director of Research participated in a publicly available advertising video intended to attract investment banking business. In addition, the Firm improperly issued research reports that lacked required disclosures. On the private offering side, from October through December 2013, Dawson James participated in the distribution of securities in connection with a best-efforts part-or-none contingency offering (the “Offering”). Dawson James was a selected dealer participating in the sale of this offering. The Firm’s written supervisory procedures required that it conduct a reasonable investigation into this contingency offering. However, Dawson James failed to confirm that bona-fide sales were used to calculate the minimum contingency requirement in the Offering. Thus, the Firm was unaware that the minimum contingency had been met using sales made to insiders. Dawson James’ failure to supervise its participation in the Offering and its failure to enforce its written procedures violated NASD Rules 3010(b) and FINRA Rule 2010. Further, from October through December 2013, the Offering’s issuer failed to designate an independent bank escrow agent for the receipt of investor funds. In contravention of Section 15(c) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 15c2-4 promulgated thereunder, the issuer’s attorney was designated as the escrow agent and used its Interest on Lawyer’s Account (“IOLA”) as the escrow account for the Offering. Dawson James accepted subscriber funds in connection with the sale of this Offering and transferred those funds to the IOLA escrow account. Therefore, Dawson James violated Exchange Act Section 15(c), Rule 15c2-4 thereunder and FINRA Rule 2010.
Gana Weinstein LLP has successfully litigated broker disputes through verdict or settlement. We represent both individuals and institutions throughout the country in FINRA arbitration, as well as commercial litigation in state and federal courts. Our consultations are both free and thorough and our securities litigation attorneys can help you uncover wrongful activity in your account.