Dawn Bennett, a former broker and registered investment adviser, was barred by the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) on allegations ranging from fraud, misstatements about assets and investment returns and failure to comply with FINRA investigations, according to an investigation by attorney Alan Rosca.
Investor rights attorney Alan Rosca, of the Rosca Scarlato LLC law firm is investigating conducts related to the bar of Dawn Bennett by both the Securities and Exchange Commission and FINRA on various allegations including fraud and failure to comply with FINRA investigations.
Until 2015, Dawn Bennett was a registered broker with Western International Securities Inc, a FINRA member firm. However, she was transacting with Bennett Group Financial Services (her private firm) at the time these allegations were brought against her.
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Dawn Bennett was Barred by Financial Industry Regulatory Authority for Failure to Appear and Testify as Requested
A default decision rendered in September 2019 which was finalized in October 2019 barred Dawn Bennett indefinitely in all capacities according to information on her FINRA Brokercheck Page. The Bar was based on the allegations of the failure of Dawn Bennett to comply with a FINRA investigation against her by refusing to appear and provide testimony as requested by FINRA on four different occasions. The investigation instituted against her was on allegations involving activities such as fraud, conversion and private securities transactions.
Prior to this bar, Dawn Bennett had been previously suspended by FINRA on similar allegations in 2016. Dawn Bennett also allegedly failed to respond to FINRA request for information. The alleged conduct of Dawn Bennett was in violation of FINRA Rule 8210. In accordance with that rule, a suspension letter was issued against Bennett, which suspended her from all capacities on August 2, 2016. However, the suspension was lifted on August 16 of the same year.
Dawn Bennett Was Barred by SEC for Material Misstatements on Investment Assets and Returns
In 2015, the SEC instituted a cease and desist proceedings against Dawn Bennett and her firm on the allegations that Bennett, from 2009 till 2011, made material misstatements and omissions regarding assets that were supposedly managed for investors and the alleged investment returns for the purpose of maintaining and increase her customers, as reported on his FINRA Brokercheck page. Bennett allegedly inflated the value of the assets they managed by $1.5 billion in a representation made to a national financial advisor ranking service. Bennett also made such misstatements in various advertisements and communications with clients and the public. It was allegedly a calculated effort to increase their profile. These misstatements were in violation of the Securities Act, Exchange Act and other related rules.
As a result of these allegations, Dawn Bennett was barred by the SEC in all capacities from acting as a broker, dealer or investment adviser. In addition to this, other sanctions were issued including civil and administrative penalties to the tune of $600,000 and Disgorgement to the tune of $556,102.
Dawn Bennett also has a pending civil litigation against her instituted by SEC in 2017. This pending action is on the allegations of fraud orchestrated by making materially false and misleading statements about her financial position and performance to raise more than $20 million from at least 46 investors. The misstatements allegedly extended to the risks associated with the investment, the purpose of the investment. In facilitating this scheme, Bennett allegedly targeted elderly and financially unsophisticated investors. Bennett allegedly diverted the funds to service debts, pay earlier investors (seemingly like a Ponzi scheme) and purchase luxuries. These conducts are in violation of various investment laws including Section 5 and 17 of the Securities Act of 1933.
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Dawn Bennett Has Been the Subject of Various Customer Dispute Disclosures
As of the date of this article, the Brokercheck Report for Dawn Bennett shows 35 settled customer dispute disclosures.
In January 2020, a customer filed a dispute requesting $500,000 for unsuitable recommendations related to a promissory note investment. This dispute was reportedly settled in January 2021 for $305,689.
In March 2020, another customer filed a dispute alleging similar misconduct while Bennett was registered with Western International Securities. Customer requested $180,000 and settled for $110,852.
In November 2019 a customer accepted $202,271 in settlement for a dispute alleging offer and sale of unregistered securities, unsuitable recommendations, fraud and misrepresentations and omissions in connection to a promissory note investment for which the alleged damages were $427,538.
In December 2019 another customer accepted $88,500 in settlement for a dispute alleging fraud, unsuitable recommendations and breach of fiduciary duty with alleged damages ranging between $100,000 and $500,000.
$750,000 was paid in settlement in February 2020 to another customer requesting $2,444,388 in alleged damages for similar allegations.
In total, at least $6,500,000 was reportedly paid in settlements to Dawn Bennett customers in disputes filed between 1995 and 2020. Investors are encouraged to visit the the Brokerckeck for latest information on customer disputes involving broker Dawn Bennett.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Securities Lawyer Investigating Potential Options on Behalf of Dawn Bennett Customers
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conducts related to Dawn Bennett’s bar by FINRA and SEC on allegations ranging from fraud and material misstatements of Investment returns among others.
The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related to Dawn Bennett’s bar by FINRA and SEC on allegations ranging from fraud and material misstatements of Investment returns among others may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.