SEC is Watching When a Brokerage Firm Doesn't Supervise its Brokers
Last year, Advanced Equities faced allegations from the Securities and
Exchange Commission (SEC) claiming that the company failed to supervise
one of its brokers. According to the allegations against the company,
Keith G. Daubenspeckfailed to correct inaccurate statements made by
registered broker-dealer Dwight O. Badger regarding their private equity offerings. Although Badger
was charged with making misleading statements to investors, Daubenspeck’s
failure to correct Badger’s misleading information was considered
by the SEC to be a
failure to supervise.
What is a “Failure to Supervise” Claim?
Each brokerage firm has a duty to supervise its individual brokers. A brokerage
firm should take reasonable measures to make sure that its individual
brokers are properly licensed, trained, and acting lawfully. When a broker
engages in investment misconduct or negligence that causes losses for
investors, the brokerage firm may be held accountable for damages due
to a failure to supervise.
How Can Investors Get Help with aStockbroker Fraud Claim Against Advanced
If you believe you have a stockbroker fraud claim against Advanced Equities,
please reach out to a
stockbroker misconduct attorney with Meyer Wilson today. Just give us a call or fill out the confidential
online contact form on this page. We’d be happy to review your investment
misconduct case, answer your questions, and explain your legal rights
and options. Our investment fraud attorneys have over 50 years of collective
experience, representing investors across the nation in securities mediation,
arbitration, and litigation, and we look forward to working with you to
recover your losses.