Investigation – Roger Denha – BKS Advisors – Southfield, Michigan
According to an administrative order on Friday, the Securities and Exchange Commission has issued a cease and desist order against investment adviser, Roger Denha.
From at least January 2012 to November 2017, Denha, while working for BKS, in Southfield, Michigan, allegedly engaged in fraudulent trade allocation, or “cherry-picking.”
Denha allegedly executed his cherry-picking scheme by “unfairly allocating purchases of securities between his favored accounts (including his personal and family accounts) and his other BKS clients’ accounts.”
The SEC alleges that Denha disproportionately allocated profitable trades to the favored accounts, and disproportionately allocated unprofitable trades to the accounts of certain advisory clients.
He purportedly executed his scheme by buying the securities in an omnibus account and then waiting to allocate until after he had an opportunity to see whether the securities had increased in price.
According to his FINRA BrokerCheck report, Denha was registered with Brandt Kelly & Simmons (BKS) Securities in Southfield, Michigan from September 2003 until October 2017.
In a separate order, BKS the SEC alleges that BKS “failed reasonably to supervise Denha and failed to implement policies and procedures reasonably designed to prevent violations of the Advisers Act and its rules.” In light of these findings, the SEC has censured and fined BKS $75,000.
Investigating Potential Claims
The White Law Group is investigating potential claims involving the liability that BKS may have for failing to properly supervise Roger Denha.
Brokerage firms are required to properly supervise their advisors. They must ensure that those advisors are complying with applicable FINRA rules and regulations. If it can be demonstrated that the firm failed to properly supervise Denha, the firm may be held responsible for investment losses in a FINRA arbitration claim.
If you have invested with Roger Denha and are concerned about your investments, the securities attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call our offices at 888-637-5510.
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 Vero Beach, Florida.
For more information on The White Law Group, please visit our website at https://www.whitesecuritieslaw.com.