On March 6, 2015 securities regulator FINRA fined and suspended Douglas Dannhardt of San Antonio, Texas from the securities industry. Without admitting or denying FINRA’s findings, Dannhardt consented to a nine month suspension from membership (from April, 2015 to January, 2016) and a $25,000 fine. He also consented to an entry of findings that he engaged in excessive and unsuitable trading in three customer IRA accounts.
FINRA alleged that Douglas Dannhardt excessively traded (“churned”) the IRA accounts in a manner that was inconsistent with the customer’s investment objectives (a suitability violation). FINRA also found that Douglas Dannhardt improperly exercised discretion in the customer’s accounts and accepted trade orders from a third party without obtaining the customer’s written authorization.
Douglas Dannhardt had been securities licensed since 1984, and had been with Prospera Financial Services of San Antonio, Texas from 1995 through January, 2014.
Douglas Dannhardt ’s registration and disciplinary history
Douglas Dannhardt was registered with the following firms
According to FINRA’s CRD disclosure report, Douglas Dannhardt has been the subject of one customer complaint and one regulatory investigation.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery and our securities attorneys have successfully resolved over 1000 investment loss cases over the past 20 years. Recoveries for clients top $40 million. The types of claims we have successfully handled include those involving unsuitable investments (suitability claims), excessive trading or “churning”, misrepresentations and omissions, unauthorized trading, over-concentration of illiquid or overly risky investments, pump and dump scams involving “penny stocks”, direct participation programs (private placements) involving real estate investment trusts (REITS), oil and gas exploration programs, leasing equipment deals and receivable financing, promissory notes whether sold through a broker dealer or as part of the outside business activities of a registered representative, ponzi scheme losses, failure on the part of the broker dealer to perform due diligence, state securities law (blue sky) violations and failure to supervise.
Investment losses can be recovered through a process known as FINRA arbitration. FINRA regulates broker dealers that sell investments, and provides an arbitration forum to resolve investor disputes. Investors can pursue claims against their brokerage firms in the FINRA arbitration forum. Common claims in the forum are those for suitability, breach of fiduciary duty, misrepresentations and omissions, negligence, violation of FINRA rules, state and federal securities laws violations, elder abuse, breach of contract and failure to supervise. On average, the recovery process takes approximately a year, from start to finish.
FINRA’s rules require that all investment recommendations made by licensed financial advisors be suitable in light of a customer’s needs, objectives and risk tolerance. In addition, all registered representatives are required to be properly supervised, with periodic inspections and reviews by qualified supervisors, whose job it is to vigorously investigate suspicions of wrongdoing (red flags).
If you have suffered investment losses please call The Law Office of David Liebrader at (702) 380-3131 for a free, confidential consultation