Dean McDermott Tied To McDermott Investment Services Client Arbitration Claim Re: Negligence

Investors apparently complained about securities broker Dean Patrick McDermott [CRD: 1731834, Bethlehem, Pennsylvania], based on disclosures on Financial Industry Regulatory Authority (FINRA) BrokerCheck. McDermott has been associated with McDermott Investment Advisors LLC since September 24, 2004. He has also been with McDermott Investment Services LLC since May 19, 2011. Investors are encouraged to continue reading to discover more about disclosures involving Dean McDermott and matters reported on FINRA BrokerCheck.

McDermott Investment Services Investor Alleged Unsuitable Advice, Failure To Supervise, and Misrepresentations

Specifically, on March 19, 2026, a McDermott Investment Services LLC client filed FINRA Arbitration No. 26-00555 about Dean McDermott. Primarily, the client alleged unsuitable recommendations, unreasonable due diligence, breach of fiduciary duty, negligence, misrepresentations, omissions, failure to supervise, and breach of contract concerning a Delaware Statutory Trust purchased through a 1031 exchange. Because of this, the client allegedly experienced damages associated with DSTs. Therefore, the client requested $227,000 in compensation from McDermott Investment Services LLC or McDermott. BrokerCheck shows that this arbitration is ongoing.

Dean McDermott Sanctioned By United States Securities And Exchange Commission For Alleged Breach Of Fiduciary Duty

Also, the United States Securities and Exchange Commission issued Case No. 5:19-cv-04229 on October 28, 2022. The regulator sanctioned McDermott with disgorgement of $143,379.33 and a civil penalty of $50,000. Allegedly, McDermott violated Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 by failing to act in clients' best interests and failing to disclose material conflicts of interest.

According to the SEC's allegations, McDermott and his investment advisory firm directed clients into versions of securities that carried transactional sales charges even though lower-cost versions of the same securities were available. The SEC also alleged that clients were not informed about the availability of those alternatives or the conflicts of interest associated with the transactions. A jury later found McDermott liable for violating Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 and for aiding and abetting McDermott Investment Advisors LLC's violations of those provisions.

Did You Invest Through Securities Broker / Financial Advisor McDermott?

Are you worried about investments you made through Dean McDermott? You can contact Soreide Law Group at (888) 760-6552 or online. Speak to a securities attorney concerning a possible recovery of your investment losses. Soreide Law Group has recovered losses for clients throughout the US. Also, our securities lawyers work on a contingency fee basis and advance all costs. McDermott and brokerage firms McDermott worked for deny allegations of sales practice violations.