George Dahl, of New York, New York, a stockbroker with Newport Coast Securities, was fined $20,000.00 and suspended for nine months from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized outside business activities; placed unauthorized trades in a customer’s account; and misrepresented customer account information. Letter of Acceptance, Waiver and Consent, No. 2013038789901 (Mar. 3, 2016).
According to the AWC, from January 2013 through January 2014, at a time when Dahl was associated with Newport Coast Securities, Dahl engaged in business activities outside the auspices of his firm. Dahl reportedly engaged in business on behalf of a manufacturing company, where he referred prospective clients to the company; edited and reviewed the company’s press releases, and facilitated meetings between prospective purchases and the company’s representatives.
The AWC stated that Dahl received compensation for his work. Dahl reportedly failed to provide written notice to Newport Coast Securities regarding his work for the manufacturing company. FINRA found that Dahl violated FINRA Rules 2010 and 3270 in this regard.
The AWC further stated that while acting in the capacity of Newport’s stockbroker, he engaged in misconduct pertaining to firm customers. Particularly, he effected unauthorized sales of securities in the account of firm customer, BD. FINRA found Dahl to be in violation of Rule 2010 as a result of engaging in unauthorized trading.
Further, between September and November of 2010, he misstated three customers’ financial profile on the firm’s new client account forms. FINRA found that Dahl led Newport to carry incorrect records and books as a result. Dahl was found to have violated FINRA Rules 2010 and NASD Conduct Rule 3110 in this regard.
Public disclosure records via FINRA’s BrokerCheck reveal that Dahl has been subject to fourteen disclosure incidents. On October 31, 1991, Dahl settled a customer dispute for $45,613.00 after a customer alleged investments in equities were unsuitable for the customer. On June 22, 1995, Dahl settled a customer dispute amid allegations of unsuitable recommendations.
On April 25, 2002, Dahl settled another customer dispute for $198,000.00 after a client alleged that the broker invested funds with an inappropriate amount of risk to the client. On June 6, 2002, Dahl became subject to a pending customer dispute, where the customer requested $36,000.00 after alleging dissatisfaction with Dahl’s investment allocations.
On April 14, 2005, Dahl settled a customer dispute for $10,231.05 after the customer alleged that unauthorized trades were effected in the customer’s account by Dahl. On April 18, 2005, RBC Dain Rauscher Inc. (Dahl’s prior employer) terminated Dahl amid allegations of his unauthorized trading.
On April 12, 2010, a customer was awarded $12,500.00 against Dahl after alleging unsuitable investments. Finally, on October 4, 2013, Dahl settled a customer dispute for $300,000.00 after a customer alleged breach of fiduciary duty and unsuitability.
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