In the past three years, Robert Douglas Armstrong (CRD# 5236735) (a/k/a R. Douglas Armstrong), a broker with Dawson James Securities, Inc. of Boca Raton, Florida, has settled five customer disputes and is currently facing two additional pending disputes. Prior to joining Dawson James Securities in 2012, Armstrong worked for Aurora Capital LLC and Westpark Capital, Inc.
The customer disputes allege the following misconduct:
- March 2017 – False and misleading assurances and unsuitable recommendations
- February 2018 – Misrepresentation, promissory statements and unsuitable recommendation
- April 2018 – Misrepresentations and promissory statements in regard to a private placement that was not suitable for the investors
- April 2018 – Misrepresentation, promissory statements and unsuitable recommendation
- December 2018 – Material misstatements, unsuitable recommendations, failure to give full disclosures and failure to invest Claimants’ account prudently
- January 2019 – Material misstatements, unsuitable recommendations, failure to give full disclosures and failure to invest Claimant’s account prudently
- January 2019 – Material misstatements and omissions, unsuitable recommendations and investing Claimant’s account negligently
According to Armstrong’s CRD Report, published by the Financial Industry Regulatory Authority (FINRA), the earliest of these disputes, initiated in March 2017, settled for $150,000, while another settled for $265,000. The pending disputes seek $105,000 and $375,000 in damages.
Armstrong disclosed business affiliations with Auxol Capital LLC, Royal Palm Investors LLC, Dogwood Creative Group, and Helomics.
Dawson James Securities
Since the firm’s inception in 2004, Dawson James Securities has had ten run-ins with regulators. As recently as 2017, Dawson James was fined $75,000 by FINRA. According to the FINRA’s Letter of Acceptance, Waiver and Consent from the 2017 investigation, “[f]rom 2009 through 2016, the Firm had supervisory failures in two areas of its business: research and private offerings.”
At least one of Armstrong’s customer disputes arises out of the recommendation and sale of a private placement. Private placements are unsuitable to most investors due to their highly complex and risky nature. Private placements are also not subject to many of the laws and regulations designed to protect retail investors.
Prior to recommending private placements, broker-dealers are obligated to conduct adequate due diligence to ensure that the investment is suitable for the customer. This includes an investigation into the company’s business prospects, executive team, financial statements, and any other red flags that may arise. Failure to investigate such red flags prior to recommending an investment could result in liability for the broker and the firm.
Did you lose money investing with Robert Douglas Armstrong of Dawson James Securities, Inc.?
If you or someone you know lost money investing with Robert Douglas Armstrong and/or Dawson James Securities, please contract the Silver Law Group toll free at (800)-975-4345 or e-mail firstname.lastname@example.org for a confidential consultation. Our attorneys represent investors nationwide for claims of unsuitable investment recommendations, negligent portfolio management, and more.