Dennis Masaaki Nakamura, former Registered Rep with McNally Financial Services Corporation Has Been Sanctioned by FINRA after Failing to Cooperate in an Investigation into Allegations of Unsuitable Recommendations to Customers
Publicly available records recently provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor Dennis Masaaki Nakamura (CRD # 819626), formerly with Moraga, CA based McNally Financial Services Corporation (CRD # 121196) was recently sanctioned by FINRA’s Department of Enforcement after an investigation into allegations of unsuitable investment recommendations to customers while he was associated with McNally Financial Services Corporation (McNally). The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Nakamura.
Mr. Nakamura became registered in the securities industry in 1976 and had been registered with McNally from September 2010 to October 2019. His prior registrations included JHS Capital Advisors, Inc. (CRD # 112097) from September 2005 to September 2010 and Sterling Financial Investment Group, Inc. (CRD # 41506) from August 2001 to September 2005.
FINRA’s Finding and Conclusions
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated November 21, 2019, Mr. Nakamura consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- In 2018, FINRA commenced an investigation into whether Nakamura violated FINRA rules by making unsuitable investment recommendations to customers while associated with McNally;
- On September 18, 2019 FINRA staff sent a request to Nakamura, through his counsel, for on-the-record testimony pursuant to FINRA Rule 8210;
- In an October 31, 2019 email, Nakamura acknowledged his receipt of FINRA’s request and indicated that he would not appear for on-the record testimony at any time; and
- By refusing to appear for on-the-record testimony, Nakamura has violated FINRA Rule 8210 and FINRA Rule 2010.
FINRA Sanctions Dennis Masaaki Nakamura
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s November 21, 2019 AWC also indicates that Mr. Nakamura consented to the following sanction:
- Being barred from association with any FINRA member firm in any capacity.
Dennis Masaaki Nakamura has a History of Customer Complaints Regarding Securities Fraud
In addition to the above, according to FINRA BrokerCheck, Mr. Nakamura has been the subject of a number of customer initiated arbitrations and/or civil law suit(s), and customer complaints regarding securities fraud, a complete list of which can be found on FINRA BrokerCheck for Mr. Nakamura. The complaints include:
- On July 9, 2018 a customer initiated arbitration was filed against Mr. Nakamura while he was associated with McNally. The allegations included failure to disclose extent of risk, unauthorized trading, recommending unsuitable investments, breach of fiduciary duty, failure to supervise, churning, breach of contract and elder abuse. The alleged damages was $491,861.68. The customer complaint was settled on September 6, 2019 in the amount of $300,000.00, to which Mr. Nakamura was required to contribute $137,253.99.
- On July 13, 1999 a customer initiated arbitration was filed against Mr. Nakamura while he was associated with Round Hill Securities, Inc. The allegations included failure to supervise, abuse of an elder, breach of fiduciary duty, breach of covenant of good faith and fair dealing, fraud, misrepresentation and negligent misrepresentation, violations of state securities laws, NASD rules of fair practice and NYSE rules. The alleged damages was $165,000.00. The customer complaint was settled on July 7, 2000 in the amount of $19,445.00
- On July 19, 1993 a customer filed a complaint against Mr. Nakamura while he was associated with First Affiliated. The allegations included unsuitable transactions. The alleged damages was $12,000.00. The complaint was settled for $12,000.00, to which Mr. Nakamura paid $5,000.00.
If you or someone you know has or had a brokerage account with Dennis Masaaki Nakamura and have concerns regarding losses in your investments or possible 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.