Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that Broker Gerald Dewes (Dewes) has been accused by investors of engaging in fraudulent misappropriation of their funds. According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Dewes was employed by Cadaret, Grant & Co., INC. at the time of the activity. If you have been a victim of Dewes’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a settled customer complaint on April 07, 2021.
Claimant alleges unsuitable investment recommendations, common law fraud, breach of contract, negligent supervision, and breach of fiduciary duty in connection with alleged investments in an unapproved private investment and two OTC stocks that were recommended by Mr. Dewes through his independent registered investment adviser and effected through accounts held at a third-party custodian.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $1,710,000.00 on May 05, 2020.
Claimants allege unsuitable investment recommendations, common law fraud, breach of contract, negligent supervision, and breach of fiduciary duty in connection with their alleged investments in two unapproved private investments and two equity-OTC securities that were recommended by the individual through his independent registered investment adviser and effected through accounts held at a third-party broker-dealer.
FINRA BrokerCheck shows a final customer complaint on March 30, 2020.
Without admitting or denying the findings, Dewes consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA in connection with an investigation into his potential participation in undisclosed private securities transactions and outside business activities.
Our law firm has extensive experience representing defrauded victims when their advisors accept loans from clients or conduct securities sales through OBAs. The practice of selling unapproved investments, promoting fraudulent schemes to hide misused funds, and engaging in other deceptive acts is known in the industry as “selling away,” a major infraction of securities laws. In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. While some of these investments may have a degree of legitimacy, they often turn out to be Ponzi schemes or involve advisors misappropriating funds.
However, federal securities laws and the FINRA rules require firms to monitor and supervise its employees in order to detect and prevent brokers from offering investments in this fashion. To effectively supervise their brokers, each firm must implement procedures to monitor advisors’ activities and interactions with the public. Selling away misconduct often occurs where brokerage firms either fail to put in place a reasonable supervisory system or fail to actually implement that system. Supervisory failures allow brokers to engage in unsupervised misconduct that can include all manner improper conduct including selling away.
In cases of selling away the investor is unaware that the advisor’s investments are improper. In many of these cases the investor will not learn that the broker’s activities were wrongful until after the investment scheme is publicized, the broker is fired or charged by law enforcement, or stops returning client calls altogether.
Dewes has been in the securities industry for more than 25 years. Dewes has been registered as a Broker with Cadaret, Grant & Co., INC. since 2014.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.