Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Dana Davis (CRD # 1707708) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into unsuitable recommendations for the use of margin.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Davis.
Registration Background for Dana Davis
Mr. Davis first became registered in the securities industry in 1989. He was most recently registered with New York, NY based Alexander Capital, L.P. (CRD # 40077) from October 2022 to March 2023. His prior registrations include Newbridge Securities Corporation (CRD # 104065) from September 2006 to October 2022 and First Montauk Securities Corp. (CRD # 13755) from February 2002 to September 2006.
FINRA’s Allegations Against Dana Davis
According to the FINRA Letter of Acceptance, Waiver and Consent (AWC) dated March 31, 2023 (No. 2019064511202), Mr. Davis consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between July 2015 and June 2020, while he was associated with Newbridge, [Mr.] Davis recommended unsuitable use of margin to effect trades in the accounts of three customers”;
- “[Mr.] Davis’s unsuitable recommendations caused the customers to pay more than $150,000 in commissions, fees, and margin interest”;
- “During the relevant period, [Mr.] Davis recommended the unsuitable use of margin in the accounts of customers-who were not experienced or sophisticated investors and did not understand margin”;
- “Nevertheless, [Mr.] Davis recommended the extensive use of margin in his customers’ accounts to leverage additional buying power while charging commissions on both buy and sell transactions”;
- “[Mr.] Davis’s recommendations to engage in unsuitable trading on margin exposed his customers to significant risk, increased costs, and sizeable losses in their accounts”;
- By virtue of his actions, Davis violated FINRA Rule 2111 regarding suitability and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Suspends Dana Davis from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s March 31, 2023 AWC also indicates that Mr. Davis consented to the following sanction(s):
- A 12-month suspension from association with any FINRA member in all capacities; and
- Partial restitution in the amount of $75,000.00.
Dana Davis Has A Prior History of Securities Industry Customer Complaints
In addition to Dana Davis being suspended by FINRA from the securities industry regarding unsuitable recommendations for the use of margin, FINRA BrokerCheck for Mr. Davis reveals that he has a history of customer complaints and/or customer-initiated arbitrations including but not necessarily limited to the following:
- On August 18, 2021 a customer-initiated arbitration was commenced against Mr. Davis regarding alleged actions that occurred while he was associated with Newbridge Securities Corporation. The customer’s allegations included overconcentration, misrepresentation, omission, and unsuitable recommendations. The customer further alleged damages in the amount of $50,000.00. On October 6, 2022, the complaint was settled in the amount of $14,999.00.
- On August 27, 2018 a customer-initiated arbitration was commenced against Mr. Davis regarding alleged actions that occurred while he was associated with Newbridge Securities Corporation. The customer’s allegations included unsuitable securities, use of margin, negligence and breach of fiduciary duty. The customer further alleged damages in the amount of $150,000.00. On September 20, 2021, the complaint was settled in the amount of $46,750.00.
- On January 8, 2018 a customer-initiated arbitration was commenced against Mr. Davis regarding alleged actions that occurred while he was associated with Newbridge Securities Corporation. The customer’s allegations included misrepresentation, unsuitable and excessive trading, negligent supervision, and breach of fiduciary duty. The customer further alleged damages in the amount of $250,000.00. On March 8, 2019, the complaint was settled in the amount of $55,000.00.
Have You Lost Money with Dana Davis
If you or someone you know has or had a brokerage account with Mr. Dana Davis and have concerns regarding losses in your investments 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.
