California Broker Fined and Suspended by FINRA for Unsuitable Recommendations

Dalas Lee Gundersen (CRD #3107187, Arbuckle, California)

was assessed a deferred fine of $5,000, suspended by FINRA for 10 business days and ordered to pay $2,837, plus interest, in disgorgement of commissions received for allegedly making unsuitable recommendation to clients, in light of their financial condition and the excessively concentrated nature of the investment, by recommending that a married couple invest approximately $1.26 million, or 80 percent of their net worth, in an intermediate municipal bond mutual fund.

The clients acted on Gundersen’s recommendation and invested their funds in two mutual funds and after Gundersen’s recommendation, they exchanged the funds previously invested in one of the mutual funds into the other mutual fund. Their purchases of the fund generated approximately $7,556 in gross commissions, of which Gundersen received $2,837 in net commissions.

The clients complained to Gundersen’s member firm about a decline in the value of their mutual fund investment and sold the fund, realizing a loss of $45,775 and incurring approximately $11,900 in deferred sales charges. The firm subsequently settled their complaint for approximately $46,000.

The suspension was in effect from March 2, 2015, through March 13, 2015.
(FINRA Case #2014040816301)

Dalas Lee Gundersen was previously registered with the following firms:

11/1999 - 01/2015 EDWARD JONES (CRD# 250) - WILLOWS, CA
09/2011 - 09/2011 MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (CRD# 7691) - CHICO, CA
10/1998 - 11/1999 PAINEWEBBER INCORPORATED (CRD# 8174) - WEEHAWKEN, NJ

This information from FINRA's Website under "Disciplinary and Other Actions April 2015, ends here."

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