Former Dakota Securities International (“Dakota”) broker Christopher R. Mcnamee (CRD# 4271195) is under investigation for recommending unsuitable investments to his customers.
The Financial Industry Regulatory Authority (“FINRA”) arbitration complaint, according to Mcnamee’s FINRA BrokerCheck report, alleges damages in the amount of $1 million. Aside from unsuitable recommendations, the FINRA arbitration complaint alleges the use of excessive margin.
Mcnamee has an additional BrokerCheck report disclosure alleging unsuitable investment recommendations as well. The dispute was settled in March 2015 for $50,000.
Mcnamee worked at Dakota, which is located in Miami, Florida, from February 2005 to March 2016.
Dakota opened in January 2004. Its president and chief compliance officer is Bruce Martin Zipper (CRD#1019731), whose BrokerCheck report reflects numerous misconduct disclosures. The alarming part of the disclosures is that he has six regulatory sanctions from various sources such as FINRA, the Florida Office of Financial Regulation, and the Florida Division of Securities and Investor Protection.
Currently, Zipper is serving a suspension for two sanctions levied by FINRA on April 22, 2016. In early June 2016, he declared bankruptcy.
Brokers have a responsibility to recommend suitable investments for their customers. This is a two-part test that needs to be passed in order for the investment to be deemed suitable. First, there must be a reasonable basis for the recommendation of the product based on investigation and due diligence into the investment’s attributes, including benefits, risks, tax consequences, and other relevant factors. In other words, would this generally be a fruitful investment?
Second, the broker must determine if this generally fruitful investment is suitable for the individual customer he or she is recommending it to. This involves examining the specific customer’s investment needs and objectives, such as the client’s retirement status, long- or short-term goals, age, disability, income needs, propensity to risk, and other relevant factors.
If an advisor goes astray from these principals and evaluation, for personal gain or simply due to negligence, the advisor should be held accountable.
Through FINRA arbitration, investors are able to recover their lost investments due to broker and/or firm misconduct. FINRA arbitration is an expedited process that is confidential.
Our nationwide firm specializes in FINRA arbitration and has taken numerous cases and won millions of dollars in the process. Clients do not pay us a cent unless we recover for them.
If you have invested with Christopher R. Mcnamee, Bruce Martin Zipper, or Dakota Securities International and have lost money doing so, you may be able to recover some or all of your losses. Our lawyers are experienced in recovering investor losses due to misconduct such as that alleged in Mcnamee’s BrokerCheck report.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.