Victor M. Dandridge III of Richmond Virginia a stockbroker formerly employed by Thompson Davis Co. Inc. has been barred by Securities and Exchange Commission (SEC) from being an investment advisor or broker or otherwise associating with investment advisories or brokerage firms according to an Order Instituting Administrative Proceedings Pursuant to Securities Exchange Act of 1934 Section 15(b) and Investment Advisors Act of 1940 Section 203(f) containing findings that Dandridge committed fraud. In the Matter of Victor M. Dandridge III Administrative Proceeding No. 3-18364 (Feb. 8, 2018).
The SEC’s Order noted that on July 19, 2017, Dandridge pleaded guilty to violating 18 U.S.C. § 1344 by committing bank fraud; and violating 18 U.S.C. § 1343 by engaging in wire fraud. United States v. Victor M. Dandridge III No. 3:17-cr-00083-HEH (July 19, 2017). Evidently, Dandridge was issued a seven year jail sentence for his fraudulent activities.
The Order further detailed that between January of 2006 and April of 2016, a total of $3,193,793.00 had been misappropriated from a customer by Dandridge. Supposedly, Dandridge steered the customer towards approving transfers of funds from the customer’s investment advisory accounts to accounts that Dandridge maintained control over. Apparently, the customer’s funds were utilized by Dandridge to finance businesses Dandridge owned that were struggling. SEC determined that Dandridge’s fraudulent activities warranted his expulsion from the securities industry.
Prior to the SEC action, Dandridge was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon Dandridge’s consent to findings that he failed to cooperate in a FINRA investigation into accusations of his misappropriation of customer funds. Letter of Acceptance Waiver and Consent No. 2016052599901 (Nov. 13, 2017).
According to the AWC, Dandridge was sent a letter from the regulator on January 23, 2017 which compelled his production of brokerage account and bank statements. Dandridge reportedly responded; however, he failed to address all of FINRA’s requests. Consequently, Dandridge’s counsel had been provided another request from FINRA for the information Dandridge failed to provide in his first response. The AWC stated that a second response was provided by Dandridge on April 11, 2017; however, Dandridge again failed to furnish account statements that FINRA asked for. Subsequently, Dandridge’s counsel reported to FINRA that Dandridge was not going to participate any further in the investigation. FINRA concluded that Dandridge’s refusal to cooperate in this respect was violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure also reveals that customers collectively filed an investment related civil action in the Richmond City, Virginia Circuit Court that involved Dandridge’s conduct where the customers requested unspecified damages based upon allegations that while Dandridge was associated with Thompson Davis Co. Inc., he negligently handled the customer’s account; breached his contractual obligations to customers; breached his fiduciary duties; and defrauded the customers by way of his misappropriation of customers’ assets between 2007 and 2016. Civil Action No. 760cl16005183-00 (Nov. 18, 2016).
Dandridge’s registration with Thompson Davis Co. Inc. has been terminated as of July 19, 2016.
