Lloyd Henry Dotson, of New Canaan, Connecticut, a stockbroker formerly registered with Commonwealth Financial Network, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to cooperate in a FINRA investigation into allegations that he engaged in outside business activities without his firm’s approval. Letter of Acceptance, Waiver and Consent, No. 2016050323501 (Apr. 4, 2017).
According to the AWC, Dotson was terminated by Commonwealth Financial Network on June 14, 2016, based upon allegations that he engaged in several outside business activities which he failed to apprise his firm about and gain their approval for. Dotson allegedly utilized an alias to solicit involvement from individuals for a multi-level marketing business.
The AWC stated that FINRA launched an investigation into Dotson’s conduct, in which the basis of his termination was being reviewed as well as his alleged involvement in private securities transactions and outside business activities. On February 6, 2017, Dotson was sent a request from FINRA, based on Rule 8210, where he was asked to provide recorded testimony before FINRA personnel in furtherance of the investigation. However, counsel for Dotson reportedly contacted FINRA on March 6, 2017, to state that Dotson would not be providing recorded testimony for FINRA at any point. FINRA found that Dotson’s failure to cooperate in the investigation was conduct violative of FINRA Rule 2010 and 8210, resulting in his permanent bar.
FINRA Public Disclosure reveals that on August 21, 2001, a customer filed an investment related written complaint involving Dotson’s conduct, in which the customer requested in excess of $5,000.00 in damages based upon allegations that Dotson, while associated with A.G. Edwards & Sons, Inc., effected over-the-counter equity and mutual fund transactions in the customer’s account which were not suitable for the customer.
Additionally, on February 3, 2003, a customer initiated investment related arbitration claim regarding Dotson’s activities was settled after the customer alleged $1,758,493.00 in damages, based upon allegations that Dotson made misrepresentations and unsuitable investment recommendations, negligently managed the customer’s investment portfolio, breached his fiduciary and contractual duties to the customer, and committed fraud in reference to the customer’s equity transactions.
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