Craig David Dima, a stockbroker formerly employed with K.C. Ward Financial, submitted an Offer of Settlement to the Financial Industry Regulatory Authority (FINRA) in which he was barred from association with any FINRA member. Without admitting or denying FINRA’s allegations, Craig Dima consented to the entry of findings that he made unauthorized and unsuitable trades in the IRA account of an elderly retiree.
According to FINRA, Mr. Dima sold nearly all of his 73-year old customer’s Colgate-Palmolive stock, which she had accumulated during her 28 years of employment with the company. FINRA alleged that on 11 occasions, Mr. Dima sold the customer’s shares without permission and even after the customer told him not to sell the stock. When Mr. Dima’s elderly customer confronted him about the sales, he misrepresented to her that the transactions were caused by a computer glitch. As a result of Mr. Dima’s unauthorized sales, the customer was charged more than $375,000 in mark-ups, mark-downs, and fees. Further, the customer was deprived of substantial dividends she would have received had she held the Colgate shares as she had intended. FINRA found that the unauthorized, unsuitable trades executed by Mr. Dima totaled approximately $15 million in his customer’s retirement account. In the Order Accepting Offer of Settlement, Mr. Dima was barred from association with any FINRA member in any capacity.
Stockbrokers have been known to engage in many types of practices that are in violation of 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 reasonable supervisory system. The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages flowing from the misconduct. Therefore, investors who have suffered losses stemming from unauthorized and/or unsuitable trade recommendations or switches by their broker can bring forth claims to recover damages against broker-dealers, like K.C. Ward Financial, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your K.C. Ward Financial account due to your stockbroker’s unauthorized and/or unsuitable trading? 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 K.C. Ward Financial stockbrokers who may have engaged in unsuitable trading strategies 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 35 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 firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.