The Securities and Exchange Commission brought an action against Bennett Group and its founder Dawn J. Bennett for federal securities fraud. Bennett and most employee associated with the Bennett Group are registered representatives of with Western International Securities, Inc.
According to the SEC’s allegations, Bennett, made material misstatements and omissions regarding assets that were purportedly “managed” for investors and regarding investment returns for the purpose of retaining existing customers and attracting new customers. Bennett and her firm are alleged to have grossly misrepresented the amount of assets managed in order to inflate their stature and thereby attract new customers and clients to the firm by creating the impression that they were larger and more successful players than they in fact were. At the time Respondents made these misstatements, they had a fledgling investment advisory business that they hoped to bolster by attracting new advisory clients, lured by their claims of industry success and impressive investment returns.
Bennett send marketing e-mails to current and prospective customers and clients touting her ranking as “No. 4 on Barron’s list of ‘Top 100 Women Financial Advisors’” and claiming that she and the firm had “assets under management of $1.5 billion.”
Bennett is also alleged to have falsely overstated Bennett Group’s investment returns and performance during her “Financial Myth Busting” radio program without disclosing that the returns were for a Bennett Group “model portfolio” and were not representative of actual investor performance. Bennett Group reported model returns and compared them to benchmarks such as the Standard & Poor’s 500 index.
Bennett has also been the subject of two arbitration proceedings in 2014 by customers whom were were awarded damages against Bennett and Western International Securities for churning, unauthorized trading, and unsuitability.
Guiliano Law Group
If you have been the victim of securities fraud and you have a complaint, you should consult with an attorney. The practice of Nicholas J. Guiliano, Esq., and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.
