FINRA Bars Bradley Mascho, former CEO of DJB Holdings
According to the Financial Industry Regulatory Authority (FINRA) on January 12, the regulator has reportedly barred Bradley Mascho for refusing to appear for on-the-record testimony relating to its investigation of fraud, undisclosed outside business activities, and private securities transactions.
FINRA states in the AWC that it is investigating Bradley Mascho for potential serious violations.
According to his FINRA BrokerCheck report, Mascho was registered with Western International Securities Inc., from October 2009 until he was terminated last month.
Mascho was formerly employed by Dawn Bennett as CEO of her company DJB Holdings LLC. Last month the SEC reportedly charged Mascho with aiding and abetting a fraud offering while working for Bennett. The charges were in connection with the alleged sale of more than $20 million in convertible and promissory notes.
SEC Charges Dawn Bennett and DJB Holdings with Fraud
In August 2017, the SEC charged Bennett and DJB Holdings with fraud. According to the SEC’s complaint, Bennett and DJB Holdings LLC raised more than $20 million by selling notes issued by her company, a Washington, D.C. luxury sports apparel firm. Reportedly, Bennett exaggerated the safety of the notes and success of her firm, claiming it was a profitable business able to pay annual returns as high as 15 percent.
Bennett allegedly claimed investor funds would be used for corporate use, however she purportedly spent some on personal expenses and used other funds to repay earlier investors, similar to a Ponzi scheme.
The SEC amended its complaint to add Mascho as a defendant. The SEC alleges that he aided and abetted Bennett’s fraud in a number of ways, including allegedly preparing false financial statements, lying to regulators and to his employer regarding his knowledge of and role in the sale of notes, facilitating Bennett’s efforts to target his firm’s brokerage customers, and attempting to disguise certain note sales by creating new, “backdated” notes and false affidavits misrepresenting the details of the note offering.
Virginia Financial Advisor Dawn Bennett first came in to the limelight in September 2015 when the Securities and Exchange Commission (SEC) charged her with fraud for claims made on her radio show and Facebook page, alleging that she was “grossly inflating” the assets she managed with her company Bennett Group Financial Services.
Investigating Potential Securities Claims
The White Law Group has represented several of Bennett’s clients and continues to investigate the liability that her FINRA registered employer, Western International Securities, may have for failure to properly supervise her.
Those claims generally allege breach of fiduciary duty, negligent supervision, and unsuitability and relate to high-risk bets on gold and gold investments.
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.
If you suffered losses investing with Dawn Bennett, The White Law Group may be able to help you. For a free consultation with a securities attorney, please call the firm 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.