In March 2019, a former client of Capital & Security Management Inc. won an award in a FINRA arbitration for compensatory damages for $326,000 plus 5% per annum until the award is paid in full. The customer complaint originally alleged $515,033.47 in damages. The investors were clients of financial advisor David Dorsett (CRD# 4348384).
According to Dorsett’s records on the Securities and Exchange Commision (SEC) site, Dorsett has been registered with Capital & Security Management Inc. in West Chester, Pennsylvania since 1991.
The causes of action included breach of fiduciary duty, negligence, unsuitable trading, and violation of the Pennsylvania Securities Act of 1972. The causes of action relate to various securities investments including bonds. The FINRA arbitration hearing was conducted in Philadelphia, Pennsylvania.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Capital & Security Management Inc. may be liable for investment or other losses suffered by Dorsett’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.