• a censure;
• a $20,000 fine; and
• restitution of $7,083.93 plus interest to customers.

Dawson James Securities, Inc’s principal place of business is in Boca Raton, Florida. The firm also has branch offices in Dayton, Maryland, and Manasquan, New Jersey.

If you are a customer of Dawson James and you have suffered financial losses, or have otherwise been harmed, contact securities arbitration law firm Iorio Law PLLC for a free and confidential review of your legal rights.

Customers that receive a partial recovery of losses through FINRA’s restitution order may still be entitled to additional recovery.

Dawson James Securities, Inc.

Dawson James Securities, Inc. is an SEC-registered broker-dealer with its principal place of business in Boca Raton, Florida. The firm has been a FINRA member since 2004. Dawson James currently employs approximately 40 registered representatives working out of three branch office locations: Boca Raton, Florida; Dayton, Maryland; and Manasquan, New Jersey. The firm’s business includes securities underwriting and retail brokerage services.

FINRA Letter of Acceptance, Waiver, and Consent No. 2017052790301

FINRA and Dawson James entered into a Letter of Acceptance, Waiver, and Consent on April 6, 2021, after alleging that from June 2015 through April 2020, Dawson James charged customers excessive commissions on 236 transactions.

FINRA Rule 2010 requires that “[a] member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade.”

FINRA Rule 2121 Supplementary Material .01 set a guideline of five percent for determining whether a commission is unfair or unreasonable. However, the “5% Policy” is a guide, not a rule. A commission pattern of five percent or even less may be considered unfair or unreasonable.

The percentage of the commission is only one of the factors to be considered in determining fairness. FINRA Rule 2121 Supplementary Material .01 identify seven other factors that members should take into consideration in determining the fairness of a commission, including (i) the type of security involved; (ii) the availability of the security; (iii) the price of the security; (iv) the size of the transaction; (v) whether the member disclosed the transaction cost to the customer prior to the trade; (vi) any pattern of markups; and (vii) the nature of the member’s business, including the cost of providing services to customers, particularly when they are of a continuing nature.

The FINRA AWC specifically alleged:

• During the period of June 2015 through April 2020, Dawson James charged commissions on certain transactions in equity securities that were not fair and reasonable, taking into consideration the factors set forth in Rule 2121 Supplementary Material .01, and that exceeded five percent.
• As a result, on a total of 236 transactions during the relevant period, the firm charged $7,083.93 in excessive commissions.
• The commissions charged ranged from approximately five percent to 66 percent of the transactions’ principal value.

As a result, Dawson James violated FINRA Rules 2121 and 2010.

How to Recover Losses or Obtain a Free Consultation

If you or a loved one were a customer of Dawson James and either sustained financial losses or suspect inappropriate activity in your investment or retirement accounts, contact New York securities arbitration attorney August Iorio of Iorio Law PLLC. August Iorio can be reached at info@iorio.law or toll-free at (646) 330-4624 for a free and confidential review of your legal rights.

About Iorio Law PLLC

Iorio Law PLLC is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have over 15 years of experience as securities arbitration lawyers and have helped investors recover investment losses in over 800 cases. The firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

This blog was published by August Iorio when he was a Partner at his previous firm and has been updated to reflect Iorio Law PLLC’s new contact information. To evaluate any potential claims, contact securities arbitration lawyer August Iorio for a free consultation contact Iorio Law PLLC at info@iorio.law or (646) 330-4624.