Dennis Masaaki Nakamura of Moraga California a stockbroker formerly registered with McNally Financial Services Corporation has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Nakamura neglected to follow FINRA’s instructions while he was under investigation for providing bad investment advice to customers of the securities broker dealer. Letter of Acceptance Waiver and Consent No. 2018058820101 (Nov. 21, 2019).
According to the AWC, in 2018, an investigation was commenced by FINRA personnel into whether Nakamura’s investment recommendations were unsuitable for McNally Financial Services Corporation customers. As part of the investigation, Nakamura’s counsel was contacted by FINRA in September 18, 2019 with instructions for Nakamura to provide recorded testimony on November 6, 2019. Nakamura’s recorded testimony was a condition of his compliance with FINRA Rule 8210.
The AWC stated that on October 31, 2019, FINRA received an e-mail from Nakamura’s legal counsel which indicated that the stockbroker got FINRA’s requests but would not comply with it. Nakamura never testified for FINRA personnel which hampered the regulator’s ability to assess whether and to what extent his recommendations were inappropriate. FINRA found Nakamura’s conduct violative of FINRA Rules 2010 and 8210. He was barred from the securities industry as a result.
FINRA Public Disclosure confirms that Nakamura is referenced in five customer initiated investment related disputes that concern allegations of his violative conduct while he was employed by securities broker dealers including Executive Financial Services Inc., First Affiliated, Round Hill Securities Inc. and McNally Financial Services Corporation. Particularly, he is referenced in a customer initiated investment related civil action which was settled for $33,000.00 in damages based upon accusations of disingenuous guarantees being made in regard to the performance of the customer’s investments.
Another customer initiated investment related complaint concerning Nakamura’s activities was resolved for $12,000.00 in damages supported by allegations that unauthorized transactions were executed by the stockbroker during the time that he was associated with First Affiliated. Nakamura is also the subject of a customer initiated investment related arbitration claim which was settled for $19,445.00 in damages founded on accusations of the violation of securities laws and regulatory rules; false or misleading statements relating to the customer’s investments; breach of a fiduciary duty; elder abuse; fraud; and Round Hill Securities’ failure to supervise Nakamura’s activities.
Another customer filed an investment related complaint regarding Nakamura’s activities in which the customer requested unspecified damages based upon allegations of the customer being overcharged by Nakamura for mutual fund trades. Also, Nakamura is referenced in a customer initiated investment related arbitration claim which was resolved for $300,000.00 in damages supported by accusations that Nakamura: engaged in elder abuse; breached his contractual obligations; churned the customer’s account; violated his fiduciary duties; made investment recommendations that failed to be suitable; effected unauthorized options and over-the-counter equities trades in the customer’s account; concealed information about risks of investments; and transacted without adequate supervision on McNally Financial Services Corporation’s part. FINRA Arbitration No. 18-02354 (Sept. 6, 2019).
Nakamura’s registration with McNally Financial Services Corporation has been terminated as of October 7, 2019.
