James Henry Dresselaers of Bethesda Maryland a stockbroker formerly registered with H. Beck Inc. has been stripped of his securities registration by Financial Industry Regulatory Authority (FINRA) on November 15, 2019 based upon accusations of Dresselaers’ failure to pay a fine that FINRA assessed for making unsuitable recommendations of exchange traded funds to customers.
FINRA Public Disclosure reveals that Dresselaers was fined $10,000.00 and suspended from associating with any FINRA member in any capacity based upon consenting to findings that his nontraditional exchange traded funds recommendations including inverse and leveraged products were not suitable for a customer given the customer’s objectives of long-term growth as well as the customer’s moderate risk tolerance, age and lack of investment experience. Letter of Acceptance Waiver and Consent No. 2016048675902 (Sept. 2, 2017). The customer sustained at least $1,100,000.00 in losses by following Dresselaers’ advice. Dresselaers’ conduct was violative of FINRA Rules 2010 and 2111 as well as National Association of Securities Dealers (NASD) Rules 2110 and 2310.
Dresselaers was also fined $10,000.00 and suspended for four months by the State of Maryland Securities Division founded on accusations of him effecting exchange traded funds, equities and commodities trades which failed to be suitable for a customer. Case No. 20180861 (May 1, 2018). The regulator indicated that the customer’s account was traded in an unsuitable manner by Dresselaers in violation of Maryland Securities Act Sections 11-301 and 11-302.
FINRA Public Disclosure indicates that Dresselaers has been identified in five customer initiated investment related disputes pertaining to allegations of his misconduct while employed by H. Beck. On June 8, 2017, a customer initiated investment related arbitration claim concerning Dresselaers had been settled for $1,500,000.00 in damages supported by allegations of omissions by the stockbroker concerning the risks of equities and exchange traded funds sold to the H. Beck customer. FINRA Arbitration No. 15-03278 (June 8, 2017). According to the claim, the customer had been poorly advised by Dresselaers in regard to stock transactions.
On June 11, 2019, another customer initiated investment related arbitration claim in reference to Dresselaers’ conduct was resolved for $285,000.00 in damages based upon accusations of non-disclosures relating to risks of ETFs that were purchased for the customer’s account. FINRA Arbitration No. 18-00925. The claim alleges that investments were unsuitable for the H. Beck customer.
Dresselaers is also the subject of a customer initiated investment related arbitration claim which was settled for $1,250,000.00 in damages based upon allegations including unsuitable recommendations of exchange traded funds by Dresselaers. FINRA Arbitration No. 18-00626 (June 13, 2019). According to the claim, the customer was placed into investments without being told about the risks. On June 14, 2019, another customer initiated investment related arbitration claim involving Dresselaers’ conduct was settled for $500,000.00 in damages based upon allegations of bad advice from Dresselaers as it pertained to closed-end funds and other mutual funds held in the customer’s H. Beck account because of Dresselaers. FINRA Arbitration No. 18-00832. According to the claim, risks of aggressive investments were not explained by the stockbroker.
FINRA Public Disclosure also confirms that on June 14, 2019, a customer initiated investment related arbitration claim concerning Dresselaers’ activities was resolved for $2,000,000.00 in damages founded on accusations of unsuitable private placements, equities and exchange traded funds sold to the customer while Dresselaers was employed by H. Beck. FINRA Arbitration No. 18-00715.
Dresselaers’ registration with H. Beck was terminated on October 13, 2017.