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 Equities?
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.