FINRA Claim Filed Against Western International Securities
The White Law Group recently submitted to FINRA Dispute Resolution a claim against Western International Securities wherein Dawn Bennett was the financial advisor of record. The claim alleges the following causes of action: violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.
The claim further alleges that Western International Securities unsuitably over-concentrated the investors in gold and other precious metals causing substantial losses.
Dawn Bennett and her firm The Bennett Group have been in the news a lot recently, having been recently charged with fraud by the SEC.
SEC Charges Against Dawn Bennett
- Dawn Bennett made material misstatements and omissions regarding assets that were purportedly “managed” for investors and regarding investment returns for the purpose of retaining existing customers and attracting new customers. Then, during the investigation of this matter, Bennett and Bennett Group made addition misstatements in an effort to obstruct the investigation and to “cover up” their prior fraud.
- Bennett and Bennett Group grossly overstated the amount of assets they “managed” by at least $1.5 billion, in a calculated effort to inflate their profile and prestige. They also made the misstatements on a Washington, D.C. radio program hosted by Bennett, and in a variety of other advertisements and communications with existing and prospective customers and clients.
- Bennett and Bennett Group also made material misstatements and omissions during the radio show regarding Bennett Group’s investment returns and performance. Bennett frequently touted her firm’s highly profitable investment returns and claimed that those returns placed Bennett Group in the “top 1%” of firms worldwide. Bennett failed to disclose that the purported “returns” were simply those of a “model portfolio” and did not reflect actual customer returns.
- In addition to the material misstatements and omissions about these matters, Dawn Bennett and the Bennett Group failed to adopt and to implement adequate written policies and procedures related to the calculation and advertisement of assets managed and of investment returns.
- Respondents falsely asserted that they gave advice regarding short-term cash management to three corporate clients regarding over $1.5 billion in corporate assets. In reality, they never provided the advice, and these were simply lies meant to deceive the Division of Enforcement.
(These are allegations only, raised by the SEC, and are still subject to proof.)
The White Law Group Files a Claim
In the claim filed by the firm, and according to Bennett’s FINRA BrokerCheck, she was registered with Western International Securities during the time period at issue. In the suit, The White Law Group is attempting to hold Western Internal Securities liability for failure to properly supervise the actions of the firm’s agent, Bennett, and specifically, for placing far too much of her clients’ assets in gold and precious metals related investments.
FINRA Dispute Resolution, which is where the firm’s claim against Western International Securities has been filed, is an arbitration venue for investors with claims against their brokerage firm or financial professional. It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.
For more information on the claim filed by The White Law Group, please contact the firm’s Chicago office at 888-637-5510.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.