April 2, 2015-San Antonio, Texas
FINRA records report that Douglas Joseph Dannhardt entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that he engaged in excessive and unsuitable trading in three IRA accounts of a customer in violation of FINRA and NASD rules.
Excessive trading occurs when a stockbroker exercises control over a customer’s account and the level of activity in that account is inconsistent with the customer’s investment objectives, financial situation, and needs.
According to the AWC, Dannhardt caused the execution of over 700 sales in the IRA accounts of closed end funds that had been held less than a year resulting in losses of over $135,000. Each of the accounts was designated as having a ‘conservative’ to ‘moderate’ risk tolerance, however due to the amount of the trading costs a minimum return of 23% was needed just to break even making the nature of the trading unsuitable for these accounts.
In addition to the excessive and unsuitable trading (churning) , Dannhardt also exercised control over the accounts without authority.
Dannhardt was fined $25,000 and suspended for for nine months.
FINRA Case # 2012034106201
According to FINRA records, Dannhardt was registered with Prospera Financial Services from 04/1995-1/2014.
Prospera Financial Services has been a FINRA member since 1982, is headquartered in Dallas, Texas. They have branch offices nationwide. According to FINRA records, Prospera Financial operates under a variety of other names in various states. In Texas they have used the following names:
- Asset Capital Management
- Bednarz Financial
- Cecil & Co.
- Cottonwood Capital
- Day Wealth Management
- Financial & Insurance Associates
- Institutional Equities
- Kingsley Advisors
- Little & Associates Wealth Management
- Mahon Financial
- Matthews Financial Services
- Michael Dallas Financial Solutions
- Mossakowski & Nichols
- Prometheus Wealth Management
- Provident Strategies Group
- PSE Wealth Management
- Rick Whitehurst Asset Management
- Silver Creek Financial Group
- Source Rock Capital Management
- Summit Investments
- The Optima Group
- Waits Financial Group
- Waters Financial
- West Texas Independent Financial Services
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
Florida-561 391 1900