Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) on January 9, 2017 indicate that Minnesota-based brokerage and investment advisory firm Dougherty & Company has been sanctioned by FINRA. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Dougherty & Company (CRD# 7477).
Established in Delaware in 1997, Dougherty & Company is headquartered in Minneapolis, Minnesota and registered with 52 US states and territories. Gerald Kraut is President and CEO; Deborah Hable is Operations Manager; Pamela Ziermann is Chief Compliance Officer; Roger Norris is Chief Supervision Officer.
According to the firm’s BrokerCheck report report, Dougherty & Company has received 23 regulatory sanctions.
In November 2016 FINRA sanctioned Dougherty & Company following allegations that “for more than four years, the firm did not adequately supervise a representative who initiated hundreds of trades for two elderly customers without contacting them, and unsuitably recommended dozens of transactions to those customers.” The representative’s supervisor allegedly did not exercise appropriate judgment or discretion, and the supervisor was allegedly not subject to adequate oversight from the firm. FINRA also found that Dougherty & Company “did not have supervisory resources that were reasonably designed to detect the representative’s misconduct” and “did not provide exception reports addressing short-term trading or margin usage to the supervisor.” FINRA also concluded that Dougherty & Company “failed to respond appropriately to warning signs about the representative’s business, such as a dramatic increase in his commissions without a commensurate change in the number of accounts that he handled or the type of products that he sold.” The firm was censured, issued a fine of $140,000, and ordered to pay $78,910 in restitution.
FINRA Rule 3110(a)(2) requires broker-dealer firms to assign “an appropriately registered principal(s)” to perform supervisory duties for every type of business the firm conducts. Principals are required to ensure the compliance of individual representatives as well as the firm as a whole. Relevant issues include the representatives’ character and qualifications, outside employment, and regulation of business transactions. Representatives may not engage in outside business activities or securities transactions without providing written notice to their supervising principals. Principals who fail in their supervisory duties may be subject to disciplinary action by FINRA or the Securities and Exchange Commission.
If you or someone you know has a complaint regarding Dougherty & Company, call the attorneys at Fitapelli Kurta at 877-238-4175 for a free consultation. You may be able to recover lost funds. Fitapelli Kurta accepts all cases on contingency: we only get paid if and when you collect money. You may have a limited window to file your complaint, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.