Florida-based Soreide Law Group has obtained the following summation of information from FINRA's Website under "Disciplinary and Other FINRA Actions February 2015."
Dawson James Securities, Inc. (CRD #130645, Boca Raton, Florida)
was censured and fined $30,000 for allegedly failing to establish and implement an adequate system to determine whether a former registrant’s disclosed outside business was properly characterized as an outside business activity or whether it should be treated as an outside securities activity subject to the requirements of NASD Rule 3040.
(According to FINRA, Rule 3040 provides that any person associated with a member who participates in a private securities transaction must, prior to participating in the transaction, provide written notice to the member with which he or she is associated. The required notice must describe the transaction, the associated person's role, and state whether the associated person has received or may receive selling compensation. If the person has received or may receive selling compensation in connection with the private securities transaction, the member must respond to the notice in writing indicating whether it approves or disapproves the proposed transaction. If the member approves, it must record the transaction in its books and records and supervise the registered person's participation in the transaction as if it were the member's own. If the associated person will not receive any selling compensation, the firm must acknowledge the written notice and may also require the person to adhere to specified conditions in connection with his or her participation in the transaction.)
FINRA's findings stated that Dawson James Securities failed to identify red flags regarding the outside business activity, including the former registrant’s emails (and those of other registered firm personnel), and failed to identify material changes to the outside business activity disclosure.
(FINRA Case #2012034911601)
This summation of FINRA information ends here.
The Soreide Law Group, (888) 760-6552, is located in Pompano Beach Florida, and represents clients nationwide before FINRA. Please call our offices for a free consultation with an attorney on how to potentially recover your investment losses.
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