Dominick & Dickerman Was Sanctioned For Allegedly Manipulating Trading Activity

Dominick & DickermanPublicly available records provided by the Financial Industry Regulatory Authority (FINRA) on June 19, 2017 indicate that New York-based brokerage firm Dominick & Dickerman, also known as Dominick & Dominick, was recently sanctioned by FINRA in connection to alleged rule violations. Fitapelli Kurta is interested in speaking to investors who have complaints regarding Dominick & Dickerman (CRD# 7344).

Established in New York in 1998, Dominick & Dickerman is headquartered in New York, New York and registered with 49 US states and territories. Robert Hladek is Chief Executive officer, Senior Vice President, and Chief Compliance Officer; the firm is owned by DM Trust, whose trustee is Derby West LLC. The firm is registered with FINRA and the Securities and Exchange Commission.

According to the firm’s BrokerCheck report report, it was recently sanctioned by FINRA.

In April 2017 FINRA sanctioned the firm following allegations it “failed to establish and maintain a system to reasonably supervise and monitor customer accounts for manipulative trading activity, such as potential market manipulation, including pre-arranged or matched trading.” According to a letter of Acceptance, Waiver and Consent (No. 2014041218901) signed by the firm and submitted to FINRA: “During the Relevant Period, the Firm effected 1,218 individual trades in Stock X (1,051 solicited trades) in 148 customer accounts, resulting in total purchase and sale activity of$3,337,059, and generating commissions of$89,000. Two Firm registered representatives accounted for over 90% of the Stock X transactions (in excess of 1,100 trades combined). On 219 trading days during the Relevant Period, the Firm effected what appeared to be 67 matched trades in Stock X. Many of the Stock X trades typically consisted of one registered representative’s selling a position while the customers of another Firm registered representative bought that same position at the same time, volume and price. Furthermore, those two representatives traded shares of StockX from personal accounts.” The above activity constituted violations of industry rules.

FINRA also alleged that, among other things, that: “During the Relevant Period, the Firm failed to reasonably implement these procedures. The Firm did not have a mechanism to review for these particular red flags systematically. The Firm’s systems lacked mechanisms or processes to detect specific and identifiable trends in potential suspicious trading, such as whether Firm customers were trading with each other in the same security at the same execution time on the same day.” The AWC Letter also states that the firm “”charged net excessive commissions totaling $ I 7,425 relating to 236 unique customer accounts and 420 equity trades,” in violation of industry rules. For all of the above conduct, Dominick & Dickerman was censured, issued a fine of $20,000, and ordered to pay restitution to customers affected by the excessive charges.

If you or someone you know has lost money investing with Dominick & Dickerman, also known as Dominick & Dominick, call Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup your losses. Fitapelli Kurta accepts all cases on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.