Stoltmann Law Offices continues to investigate Dawn Bennett. According to a recent Disciplinary Proceeding against her, Bennett failed to provide information and documentation requested by the Financial Industry Regulatory Authority (FINRA) in an investigation involving potentially serious violations, such as conversion, fraud and private securities transactions. On July 11, 2016, Bennett was barred from the securities industry for violating federal securities rules by, among other things, making material misrepresentations and omissions regarding her assets under management. She was also ordered to cease and desist from any further violations of federal securities rules and ordered to pay disgorgement of $556,102 and ordered to pay a civil penalty of $600,000.
According to a FINRA investigation, in 2015, Bennett allegedly solicited and sold approximately $6 million in DJB11 convertible notes, and/or promissory notes purportedly guaranteed by her company, to 30 investors, most of whom were elderly. Bennett may have misappropriated investors’ money, committed fraud, and engaged in undisclosed outside business activities and private securities transactions. These are all against securities rules and regulations.
According to her FINRA BrokerCheck report, Bennett was registered with Wheat, First Securities in Charlotte, North Carolina from March 1987 until August 1996, Legg Mason Wood Walker in Baltimore, Maryland from August 1996 until February 2006, Citigroup Global Markets in New York, New York from February 2006 until February 2006, Royal Alliance Associates in Washington, D.C. from February 2006 until October 2009 and Western International Securities in Washington, D.C. from October 2009 until December 2015. She has 12 customer disputes against her, seven of which are currently pending. She is not currently licensed within the industry.