September 18, 2019 Comments (0) Current Investigations, Securities Fraud

Bradley Mascho Securities Fraud Investigation Update

Bradley Mascho | Securities Fraud Investigation Update, featured by top securities fraud attorneys, The White Law Group

Dawn Bennett’s “right hand man,” Bradley Mascho Sentenced to Prison

According to reports this week, Bradley Mascho, Dawn Bennett’s chief assistant in her alleged Ponzi scheme, has been sentenced to 30 months in prison to be followed by three years of supervised release. Further, U.S. District Judge Paula Xinis reportedly ordered him to make restitution payments of $4.8 million.

Mascho reportedly pleaded guilty in June 2018 to conspiracy to commit securities fraud and making a false statement.

In January 2018 the Financial Industry Regulatory Authority (FINRA) reportedly barred Mascho for refusing to appear for on-the-record testimony relating to its investigation of fraud, undisclosed outside business activities, and private securities transactions.

Mascho was formerly employed by Dawn Bennett as CEO of her company DJB Holdings LLC and also worked as a financial advisor for Bennett Group Financial Services. The SEC apparently also 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.

From December 2014 through April 2017, Bennett and Mascho enticed investors, including some clients of Bennett’s RIA, with convertible or promissory notes, offering a 15% annual interest rate, according to prosecutors. Many of the victims were retired investors, some of whom were persuaded to hand over substantial portions of their nest eggs to invest in DJB Holdings.

Dawn Bennett was reportedly convicted on all 17 counts in her indictment including charges of securities fraud, wire fraud and bank fraud. She was sentenced in July to 20 years in prison and ordered to pay $14.5 million in restitution and $14.3 million in forfeiture. She appealed her conviction in August.

Bennett  first came in to the limelight in September 2015 when the 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 Fraud 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 and her associate, Bradley Mascho.

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 Bradley Mascho or 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, 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 on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.

 

 

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