SEC Charges Former Financial Adviser with Fraud

Posted on August 31st, 2017 at 11:15 AM
 SEC Charges Former Financial Adviser with Fraud

From the Desk of Jim Eccleston at Eccleston Law LLC:

The SEC has charged former Washington D.C. financial adviser, Dawn J. Bennett with defrauding investors and spending their money on herself and to make Ponzi-like payments to earlier investors in the alleged scheme. Bennett’s sports apparel firm, DJB Holdings, LLC was also charged by the SEC.

More specifically, according to the SEC, Bennett raised more than $20 million by selling notes issued by her DJB Holdings, and by exaggerating the safety of the notes and the success of her firm. Moreover, Bennett touted her company’s profitability by promising that it would pay annual returns as high as 15 percent. However, Bennett instead used the investor funds for her own personal expenses and used other funds to repay earlier investors.

In addition to the SEC charges, the U.S. Attorney's Office for the District of Maryland has brought criminal charges against Bennett.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, James Eccleston, Eccleston Law LLC

Return to Archive

TESTIMONIALS

Previous
Next

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

August 8, 2022
SEC Files Suit Against Georgia Advisor Over Misappropriation of Client Funds

The Securities and Exchange Commission (SEC) is filing suit against a Georgia-based advisor, Christopher Burns, who allegedly misappropriated client funds.

August 5, 2022
SEC Fines RIA $5.8 Million Over 12b-1 Fee Infractions Tied to Wrap Accounts

The Securities and Exchange Commission (SEC) has imposed a $5.8 million fine against Private Advisor Group over 12b-1 fee violations tied to its wrap fee program. 

August 4, 2022
North Dakota Regulators Seek to Close Down Advisory Firm Selling Crypto and Weed Products

The North Dakota Securities Commissioner’s office is seeking to shut down a small West Fargo-based registered investment adviser (RIA) after its owner allegedly violated state securities laws and improperly took custody of $17.8 million in client funds beginning in 2017.