Concerned about Investment Losses with Dougherty & Company LLC?
According to FINRA, Dougherty & Company LLC (CRD #7477, Minneapolis, Minnesota) was censured, fined $140,000 and required to pay $78,910 in restitution to a customer. FINRA alleges that for more than four years, the firm did not adequately supervise a representative who initiated hundreds of trades for two elderly customers without contacting them, and unsuitably recommended dozens of transactions to those customers.
FINRA’s findings stated that the firm assigned supervision of the representative’s trading activity to a supervisor who was also responsible for supervising numerous other representatives and handling his own customers’ accounts. Supervision of the representative was not subject to adequate oversight or specific direction from the firm. Instead, the firm relied on the supervisor’s discretion and judgment, which he did not exercise appropriately.
The findings also stated that Dougherty & Company LLC did not have supervisory resources to detect the representative’s misconduct. While the supervisor received daily trade blotters and certain monthly exception reports, the firm did not provide exception reports addressing short-term trading or margin usage to the supervisor.
For FINRA’s full finding see FINRA Case #2015047008701.
Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.
If you suffered losses investing with Dougherty & Company LLC, the attorneys at The White Law Group may be able to help you. For a free consultation, please call (888) 637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For more information, please visit our website, www.whitesecuritieslaw.com.