Dana H. Davis of Hauppauge, New York, a stockbroker registered with Newbridge Securities Corporation, has been suspended for twelve months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Davis made unsuitable recommendations and inappropriately advised customers regarding margin. Letter of Acceptance, Waiver, and Consent No. 2019064511202 (March 31, 2023).
According to the AWC, between June of 2015 and June of 2020, Davis advised customers to use margin when those customers lacked an understanding of margin and lacked experience. The AWC states that Davis recommended margin use to leverage buying power and to generate commissions via sales and purchases of securities.
The regulator states that customers’ positions usually experienced losses. Customers experienced margin interest charges and trading costs as well. Davis failed to have an adequate basis to conclude that margin use was appropriate, given the customers’ needs, financial situation, and investment objectives.
FINRA Public Disclosure shows that Davis is referenced in nine customer initiated investment related disputes concerning Davis’ conduct while associated with securities broker dealers. On December 18, 2008, a customer initiated investment related FINRA securities arbitration claim involving Davis’ conduct was settled for $75,000.00 in damages based upon allegations that Davis engaged in unauthorized trading, churned the customer’s account, breached his fiduciary duties to the customer, committed fraud, made misrepresentations of material fact, and was negligent in connection with the sale of over the counter equities during the time that Davis was associated with First Montauk Securities Corporation. FINRA Arbitration No. 07-02032.
On October 24, 2011, another customer filed an investment related complaint involving Davis’ conduct in which the customer requested $9,078.55 in damages based upon allegations that Davis made unsuitable recommendations of over the counter equities, common stocks, and preferred stocks during the time that Davis was associated with Newbridge Securities Corporation.
Davis was also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $55,000.00 in damages based upon allegations that Davis made misrepresentations of material fact, made unsuitable recommendations to the customer, engaged in excessive trading, negligently supervised certain representatives, and breached his fiduciary duties to the customer in connection with the sale of common stocks, preferred stocks, and options. FINRA Arbitration No. 17-03175 (March 8, 2019).
On September 20, 2021, a different customer initiated investment related FINRA securities arbitration claim involving Davis’ conduct was settled for $46,750.00 in damages based upon allegations that Davis made unsuitable recommendations, inappropriately used margin, was negligent, and breached his fiduciary duties to the customer in connection with the sale of common stocks and preferred stocks. FINRA Arbitration No. 18-03022.
Davis was also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $14,999.00 in damages based upon allegations that Davis overconcentrated accounts in certain investments, made misrepresentations and omissions of material fact, and made unsuitable recommendations of GPB products. FINRA Arbitration No. 21-02133 (October 6, 2022).
Davis’ registration with Newbridge Securities Corporation was terminated on October 17, 2022.
