Joseph Alan Dawson – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Joseph Alan Dawson.
BrokerComplaints.com is currently investigating allegations related to Joseph Alan Dawson. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Joseph Dawson
Joseph Alan Dawson is an Investment Adviser. Joseph Alan Dawson’s Central Registration Depository (CRD) number is 2609024 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/2609024.
Click here to download a Detailed Audit Report for Joseph Alan Dawson.
Joseph Alan Dawson has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Joseph Alan Dawson’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 3/28/2012
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: COMMODITY FUTURES TRADING COMMISSION (CFTC)
- Allegations: CFTC PRESS RELEASE 6222-12, MARCH 28, 2012: THE CFTC FILED OF A NOTICE OF INTENT TO REVOKE THE REGISTRATIONS OF JOSEPH A. DAWSON (DAWSON) AND HIS COMPANY, A REGISTERED COMMODITY POOL OPERATOR (CPO). DAWSON IS THE PRESIDENT AND SOLE PRINCIPAL OF HIS COMPANY AND HAS BEEN A REGISTERED ASSOCIATED PERSON OF IT SINCE FEBRUARY 13, 2009. ACCORDING TO THE CFTC, DAWSON IS SUBJECT TO DISQUALIFICATION FROM REGISTRATION UNDER THE COMMODITY EXCHANGE ACT (CEA) BASED ON HIS FELONY CONVICTION FOR WIRE FRAUD, A FEDERAL COURT’S FINDING THAT HE COMMITTED FRAUD AND MISAPPROPRIATION, AND A FEDERAL COURT’S ENTRY OF A PERMANENT INJUNCTION ORDER AGAINST HIM. SPECIFICALLY, THE CFTC STATED THAT ON MARCH 8, 2011, DAWSON PLED GUILTY TO THREE FELONY COUNTS OF WIRE FRAUD IN VIOLATION OF 18 U.S.C. u00a7 1343 IN UNITED STATES V. DAWSON, A CRIMINAL ACTION FILED BY THE U.S. ATTORNEY’S OFFICE FOR THE NORTHERN DISTRICT OF ILLINOIS ON DEC. 17, 2009, 09-CR-1037 (N.D. ILL. DEC. 17, 2009). THE U.S. DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS SENTENCED DAWSON TO 54 MONTHS OF IMPRISONMENT AND ORDERED HIM TO PAY RESTITUTION TO HIS VICTIMS. THE CFTC ALSO STATED THAT ON APRIL 26, 2011, THE U.S. DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS ENTERED A CONSENT ORDER OF PERMANENT INJUNCTION AGAINST DAWSON IN A CFTC ANTI-FRAUD ACTION FILED ON JULY 20, 2010, AGAINST DAWSON AND HIS UNREGISTERED CPO, 10-CV-4510 (N.D. ILL. JULY 20, 2010). IN THAT CONSENT ORDER, DAWSON ADMITTED THAT HE MISAPPROPRIATED APPROXIMATELY $2.1 MILLION OF COMMODITY POOL PARTICIPANT FUNDS, FRAUDULENTLY SOLICITED POOL PARTICIPANTS, AND MADE MATERIAL FALSE STATEMENTS TO POOL PARTICIPANTS IN VIOLATION OF THE CEA. THE CONSENT ORDER PERMANENTLY PROHIBITED DAWSON FROM VIOLATING THE CEA’S ANTI-FRAUD PROVISIONS.
- Resolution: Decision
- Sanction Details :: Sanctions: Revocation
DISCLOSURE 2 –
- Event Date: 3/25/2011
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: SEC ADMIN RELEASE 34-64126; IA RELEASE 3180, MARCH 25, 2011: THE SECURITIES AND EXCHANGE COMMISSION (COMMISSION) DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE PROCEEDINGS BE INSTITUTED PURSUANT TO SECTION 15(B) OF THE SECURITIES EXCHANGE ACT OF 1934 (EXCHANGE ACT) AND SECTION 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940 (ADVISERS ACT) AGAINST JOSEPH A. DAWSON (DAWSON OR ESPONDENT). THE COMMISSION FOUND THAT ON MARCH 17, 2011, THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS ENTERED A FINAL JUDGMENT BY CONSENT AGAINST DAWSON PERMANENTLY ENJOINING HIM FROM FUTURE VIOLATIONS OF SECTIONS 5(A), 5(C), AND 17(A) OF THE SECURITIES ACT OF 1933 (SECURITIES ACT), SECTIONS 10(B) AND 15(A) OF THE EXCHANGE ACT AND RULE 10B-5 THEREUNDER AND SECTIONS 206(1), 206(2), AND 206(4) OF THE ADVISERS ACT AND RULE 206(4)-8 THEREUNDER IN THE CIVIL ACTION NUMBER 1:11-CV-01615. THE COMMISSION ALSO FOUND THAT ON NOVEMBER 18, 2010, DAWSON PLED GUILTY TO THREE COUNTS OF WIRE FRAUD (18 U.S.C. u00a7 1343) BEFORE THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS IN CRIMINAL ACTION NO. 1:09-CR-01037-1. DAWSON WAS SENTENCED ON MARCH 8, 2011 TO 54 MONTHS IN PRISON.
- Resolution: Order
- Sanction Details :: Sanctions: Bar (Permanent)
- Sanction Details :: Registration Capacities Affected: ASSOCIATION WITH ANY BROKER, DEALER, OR INVESTMENT ADVISER, MUNICIPAL SECURITIES DEALER, OR TRANSFER AGENT
- Start Date: 3/25/2011 Registration Capacities Affected: PARTICIPATING IN ANY OFFERING OF A PENNY STOCK
- Start Date: 3/25/2011
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- SHEPHERD FINANCIAL GROUP, INC. (CRD#: 38689) :: 8/10/1995 – 2/28/1997 :: VERNON HILLS, IL
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Joseph Alan Dawson, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Joseph Dawson
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Joseph Alan Dawson – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (2609024) for the broker – Joseph Alan Dawson
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.
The views and opinions expressed in these articles are those of the source BrokerComplaints.com and do not necessarily reflect the official position of ‘The Skeptic Files,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.
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