Labor Department Fines DeWaay For Retirement Plan Recommendations

Posted on April 28th, 2014 at 9:00 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

The Department of Labor (DOL) ordered financial adviser Donald DeWaay Jr. and his firms to pay $341,487 to 68 retirement plans related to some of his firm’s sales.

DeWaay owns registered investment advisory shop DeWaay Capital Management Inc., DeWaay Benefit Administrator, an employee benefits plan administrator, and defunct broker-dealer DeWaay Financial Network.

The DOL’s Employee Benefits Security Administration alleged that Mr. DeWaay, the firms he owns and a group of ex-employees allhad violated the Employee Retirement Income Security Act (ERISA) of 1974 when they recommended certain investments to clients in retirement plans between November 2004 and May 2007. In addition, DeWaay’s companies and the advisers assessed their client’s higher fees than whatinitiallyhad been agreed upon. Further, the recommendations led DeWaay, his firm and former employees to receive commissions from third parties.

DeWaay and the advisers are subject to a provision that would enjoin them from selling or recommending so-called “market alternative investments” to ERISA plans. The list of alternative investments included private-placement real estate trusts, non-traded REITS, structured products and a variety of other investments.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags:

Return to Archive

TESTIMONIALS

Previous
Next

I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

October 20, 2021
5 First-of-Their-Kind SEC Enforcement Actions Announced

Securities and Exchange Commission (SEC) Enforcement Director Gurbir Grewal recently discussed notable first-of-their-kind enforcement actions that his division has pursued.

October 19, 2021
FINRA Targets SPACs in Most Recent Exam Sweep

The Financial Industry Regulatory Authority (FINRA) has begun an examination sweep of advisors’ involvement with special purpose acquisition companies (SPACs).

October 18, 2021
SEC’s Statement on Complex Exchange-Traded Products

The Securities and Exchange Commission (SEC) recently voted to approve a pair of rule changes proposed by Cboe BZX Exchange, Inc. to list and trade shares of new exchange traded-products: the 2x Long VIX Futures ETC and the -1x Short VIX Futures ETF.