Timothy Dembski Barred by FINRA

Timothy DembskiAccording to Financial Planning and public records provided by the Financial Industry Regulatory Authority (FINRA) on February 17, 2016, former New York-based Mid Atlantic Capital adviser Timothy Dembski has been permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public. The securities and investment fraud law firm Fitapelli Kurta is investigating allegations of misconduct regarding Mr. Dembski (CRD# 2575882).

Timothy Dembski has spent seventeen years in the securities industry and was most recently registered with Mid Atlantic Capital in Buffalo, New York (2011-2013). Previous registrations include Wall Street Financial Group in Cheektowaga, New York (2006-2011) and Securities America in Cheektowaga, New York (1995-2006). He is currently not registered with any state or firm.

According to his BrokerCheck report, Timothy Dembski is the subject of one regulatory sanction, one pending regulatory complaint, and one pending customer complaint.

In February 2016 FINRA barred Timothy Dembski following allegations he “fraudulently induced retail customers to invest in a hedge fund.” According to allegations detailed in Financial Planning, Mr. Dembski misrepresented that the hedge fund “was based on a computer algorithm” and “would sell individual stock positions daily when the share price rose by 3% or dropped by 1% before 3 p.m.” In fact, the fund was not based on an algorithm, and the investment in question was speculative. According to FINRA, Mr. Dembski and another respondent recommended the investment to customers with limited experience, some of whom invested retirement assets or surrendered variable annuities. In the last month that the fund traded, allegedly, “it lost over 80% of its value.” Mr. Dembski was permanently barred from associating with any FINRA member firm in any capacity.

In December 2014 Timothy Dembski was also named respondent in a Securities and Exchange Commission complaint regarding the above allegations. The action remains pending.

In 2013 a customer alleged Timothy Dembski, while employed at Mid Atlantic Capital and Reliance Advisors, misrepresented and recommended an unsuitable hedge fund investment. The customer is seeking $35,000 in damages in the pending complaint.

If you or someone you know has a complaint regarding Timothy Dembski, call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup losses. Fitapelli Kurta accepts every case on contingency: we only get paid if and when you collect money. Time to file your claim may be limited, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.