Dakota Securities International (Dakota) and Bruce Martin Zipper (Mr. Zipper) appealed a National Adjudicatory Council (NAC) decision to the Securities and Exchange Commission (SEC). The Hearing Panel imposed three expulsions on Dakota for allegedly failing to maintain accurate books and records, failing to supervise, and allowing Mr. Zipper to associate with them and engage in activities requiring registration while suspended. The Hearing Panel also imposed two bars on Mr. Zipper for associating with Dakota and engaging in the particular activities while suspended and intentionally misidentifying the representative of record on customer transactions.
In 2004, Mr. Zipper founded Dakota and was the majority owner until January 2018, when he sold his ownership. According to the NAC findings, Mr. Zipper executed then later tried to withdraw from an AWC that was final and non-appealable due to his failure to disclose three unsatisfied judgments on his Form U4. The findings stated that FINRA informed Mr. Zipper of his suspension, and during his absence he allegedly arranged for Dakota to continue operations without him for the three months. During the same period, Dakota did not restrict Mr. Zipper’s access to the firm’s email system or to the firm’s trading system in which he engaged and recommended transactions while suspended. In addition to the NAC findings, Mr. Zipper admitted that he intentionally misidentified the representative of record on hundreds of trades caused Dakota to maintain inaccurate books and records. Dakota Securities International was expelled from FINRA membership and Mr. Zipper was barred from association with any FINRA member in all capacities.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from misconduct by their broker can file claims to recover damages against broker-dealers, like Dakota Securities International, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Dakota Securities International account due to misconduct by your broker? Was Bruce Martin Zipper your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Dakota Securities International stockbrokers who may have engaged in broker misconduct and caused investors’ losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.