Dempsey Lord Smith: 4 Regulatory Complaints
Publicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on June 11, 2019 indicate that Georgia-based brokerage firm Dempsey Lord Smith has received FINRA sanctions in connection to alleged rule violations. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Dempsey Lord Smith (CRD# 141238).
Established in Georgia in 2006, Dempsey Lord Smith is headquartered in Rome, Georgia and registered with 51 US states and territories. The firm’s 11 types of business include: Broker or dealer retailing corporate equity securities over-the-counter; broker or dealer selling corporate debt securities; mutual fund retailer; US government securities broker; pit and call broker or dealer or option writer; non-exchange member arranging for transactions in listed securities by exchange member; and private placement of securities. According to the firm’s BrokerCheck report, it has received four regulatory sanctions.
In 2017 the New York State Insurance Department sanctioned Dempsey Lord Smith in connection to allegations it failed to timely disclose two regulatory actions to the Department. In connection with these findings, the firm was issued a fine of $750.
In 2016 the North Carolina Insurance Department sanctioned the firm in connection to allegations it failed to timely disclose two regulatory actions to the Department. In connection with these findings, the irm was issued a fine of $500.
In 2015 the State of North Dakota sanctioned the firm in connection to allegations it sold securities despite its lack of registration in the state. In connection with these findings, the firm was issued a fine of $500.
In 2015 FINRA sanctioned Dempsey Lord Smith in connection to allegations that acting through its chief executive officer and financial and operations principal, the firm failed to establish escrow accounts compliant with securities law in connection with three private placement contingent offerings, despite the firm’s participation in these offerings and acceptance of customer funds. According to FINRA’s findings, that individual, acting as the firm’s principal, permitted customer funds “to be commingled in attorney escrow accounts” created by the investments’ issuers. FINRA’s findings additionally stated that this individual “forwarded seven emails to prospective investors in connection with solicitations to sell bonds issued by an affiliate of the firm,” and that these emails included unfair, unbalanced, and/or promissory statements. FINRA also stated that the firm did not enforce written supervisory procedures in such a manner that would ensure the creation of proper escrow accounts for the three contingent offerings in question, and that the firm did not ensure the compliance of representatives’ communications with FINRA’s rules concerning advertisements. In connection with these findings, the firm was censured and issued a fine of $10,000.
If you or someone you know has lost money investing with Dempsey Lord Smith, call the experienced attorneys at Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup your losses. Fitapelli Kurta accepts all cases on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited by law, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.