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CMD Investigating Claims Against Dougherty & Company LLC for Failure to Supervise, Unsuitability and Unauthorized Trading

Securities law firm Carmel, Milazzo & DiChiara LLP (CMD) is investigating claims against Dougherty & Company LLC for failure to supervise, unsuitability and unauthorized trading.

According to FINRA, Dougherty & Company LLC was censured, fined $140,000 and required to pay $78,910 in restitution to a customer. According to FINRA, for more than four years, Dougherty & Company LLC, did not adequately supervise a representative who initiated hundreds of trades for two elderly customers without contacting them, and unsuitably recommended dozens of transactions to those customers. The findings also stated that Dougherty & Company LLC did not have supervisory resources that were reasonably designed to detect the representative’s misconduct. The findings also included that Dougherty & Company LLC failed to respond appropriately to warning signs about the representative’s business, such as a dramatic increase in his commissions without a commensurate change in the number of accounts that he handled or the type of products that he sold.

Dougherty & Company LLC’s system of supervision was not reasonably designed under the circumstances to prevent violations of securities laws and rules, including rules governing trading without customers’ approval (unauthorized trading) and unsuitable recommendations.

If you or someone you know lost money investing with Dougherty & Company LLC, you may be entitled to recover your investment losses through FINRA arbitration. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid.  Your time to file a claim may be limited, so contact us today at (212) 658-0458 or for a free and confidential case evaluation.