Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker-dealer, Dalmore Group LLC (CRD # 136352) was recently sanctioned by FINRA’s Department of Enforcement after an investigation into its failure to adequately supervise its private placement offerings of securities.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Dalmore Group LLC and any securities purchased through private placement offerings.
Registration Background for Dalmore Group LLC
Dalmore Group LLC has been a member of FINRA since 2005 with its main office located in Woodmere, NY. The firm has three branch offices with approximately 40 registered representatives. It offers investment banking services, mainly private placement offerings of securities.
FINRA’s Allegations Against Dalmore Group LLC
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated March 19, 2021, Dalmore Group LLC consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between March 2017 and December 2018, Dalmore failed to establish and maintain a supervisory system, including written supervisory procedures, reasonably designed to ensure that the firm complied with its due diligence obligations, in violation of FINRA Rules 3110 and 2010”;
- “From April 2017 through February 2019, Dalmore also failed to submit required offering documents to FINRA within 15 calendar days of the date of first sale for 26 private placements, in violation of FINRA Rules 5123 and 2010”;
- “For two private placement offerings that Dalmore recommended and sold to customers between March 2017 and December 2018, the firm failed to conduct and document reasonable investigations of the offerings before recommending these securities to customers”;
- “The firm failed to review any business plans or models, prospects for the industry, any existing or potential regulatory restrictions on the business and the competitive position of the issuer”;
- “[R]ather than conducting an independent investigation, [Dalmore] relied almost exclusively on documentation and information the issuers provided. As a result, [Dalmore] failed to uncover relevant information regarding the issuer ”; and
- By virtue of his it’s actions, Dalmore Group LLC violated FINRA Rule 3110, regarding supervision; FINRA Rule 5123, regarding private placements of securities; and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Sanctions Dalmore Group LLC
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s March 19, 2021 AWC also indicates that Dalmore Group LLC consented to the following sanction(s):
- A censure; and
- A fine in the amount of $40,000.00.
Dalmore Group LLC has No History of Customer Complaints
In addition to Dalmore Group LLC being censured and fined for its failure to adequately supervise private placement offerings, FINRA BrokerCheck for Dalmore Group LLC reveals it has no history of customer complaints and/or customer-initiated arbitrations.
If you or someone you know has or had a brokerage account with Dalmore Group LLC and have concerns regarding losses in your investments, including private placement offerings or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.