Securities Broker Paul DiPietro Allegedly Breached Fiduciary Duty, Sold Unsuitable Investments
Soreide Law Group is evaluating possible investor lawsuits to be brought against securities broker Paul R. DiPietro (CRD#: 4313454, Boca Raton, Florida) or his employing securities firms. Notably, Financial Industry Regulatory Authority (“FINRA”) BrokerCheck indicates that a tenth client came forward to contest DiPietro’s sales practices. Let’s take a closer look at some of these recent disputes regarding DiPietro’s actions when he was a broker for Dawson James Securities.
Paul DiPietro Supposedly Commits Breach Of Fiduciary Duty Against Dawson James Client
Evidently, a client of Dawson James contested Paul DiPietro’s sales practices through a FINRA Arbitration Action in July 2020. First of all, the client alleges that the broker acted in breach of fiduciary duty. This might mean that DiPietro failed to place the client’s interests first. Secondly, the broker supposedly acted in breach of contract and with negligence in connection with stock trades. Finally, the client was allegedly deceived by investing through the broker. For this reason, the client asks Dawson James or DiPietro to pay $100,000 to offset equities losses. This matter is currently underway.
Dawson James Client Indicates That DiPietro Made Unsuitable Recommendations
Apparently, a second Dawson James client disputed Paul DiPietro’s actions via an August 2019 lawsuit. Notably, the client alleges that DiPietro recommended unsuitable investments to the client. It seems that the client might not have been the right fit for certain OTC equities trades because of the client’s risk tolerance, investment objectives or other issues relating to suitability. Because of this, the client demands $68,926.88 to settle this matter.
Paul DiPietro Allegedly Churns Account Of Dawson James Client
In a third dispute about Paul DiPietro, a client alleged churning and unsuitable securities. The claim was brought in April of 2018 in regard to the broker’s purportedly frequent trading of penny stocks and listed equities in 2015. It is possible that DiPietro may have traded mainly to generate commissions from the client given the allegation of churning. It appears that Dawson James settled this matter through making a payment to the client in the amount of $10,000 in September 2020.
Dawson James Client Indicates That DiPietro Failed To Follow Instructions
Evidently, a fourth Dawson James client brought a dispute about Paul DiPietro over equities losses. According to the client, DiPietro did not follow instructions. The broker supposedly failed to execute orders which caused the client to experience a decline in the value of their stock holdings. However, the client withdrew this complaint in April 2015.
Prior Disputes Signal Misconduct By Paul DiPietro
Notably, in a prior dispute about Paul DiPietro, a client of Chicago Investment Group alleged churning, suitability and failure to supervise. That dispute settled through the client receiving a payment of $160,000. Finally, a couple different investors took issue with DiPietro purportedly failing to follow instructions. However, those disputes were denied.
Did You Sustain Investment Losses Because Of DiPietro’s Sales Practices?
FINRA BrokerCheck indicates that Paul DiPietro denies all allegations of sales practice violations as alleged in the foregoing disputes. Have you experienced losses because of the broker? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to mistreatment by financial advisors and securities brokers.