Financial Advisor Dennis Herrera Suspended by FINRA

• September 4, 2025
• Aegis Capital Corp

Dennis Daniel Herrera (CRD#: 4618370) was a previously registered broker.

Broker’s History

He entered the securities industry in 2003 and previously worked with J.P Turner & Company, LLC; Park Capital Securities, LLC (FINRA expelled the firm in 2005); Hunter Scott Financial LLC (FINRA expelled the firm in 2014); Mercer Capital Ltd.; John Thomas Financial (FINRA expelled the firm in 2013); Charles Vista LLC (FINRA expelled the firm in 2014); Blackbook Capital LLC (FINRA expelled the firm in 2016); Laidlaw & Company (UK) Ltd.; and Aegis Capital Corp.

Current and Past Allegations of Conduct Leading to Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in August of 2025, without admitting or denying the findings, Herrera consented to the sanctions and to the entry of findings that he willfully violated the Best Interest Obligation under Rule 15l-1(a)(1) of the Securities Exchange Act of 1934 (Reg BI) by recommending to two customers, one of whom was a senior, a series of trades that were excessive, unsuitable and not in the customers’ best interest.

According to FINRA, between January 2019 and February 2023, Herrera excessively traded the accounts of two retail customers, one of whom was a senior. Herrera’s trading resulted in high turnover rates and cost-to-equity ratios that were above the traditional guideposts of six and 20 percent, respectively, as well as significant losses, as set forth below. In September 2017, Customer A, then a 68-year-old plumber, opened an account at Aegis. Between January 2019 and February 2023, Herrera recommended 205 transactions in Customer A’s account resulting in an annualized turnover rate of 12 and an annualized cost-to-equity ratio of 25 percent. Customer A relied on Herrera’s advice and routinely followed his recommendations, and, as a result, Herrera exercised de facto control over the account. Herrera’s trading in Customer A’s account generated $123,557 in commissions and caused $270,219 in realized losses.

In February 2017, Customer B, then a 56-year-old oil and gas consultant, opened an account at Aegis. Between June 30, 2020, and December 2022, Herrera recommended 118 transactions in Customer B’s account resulting in an annualized turnover rate of six and an annualized cost-to-equity ratio of 28 percent. Herrera’s trading in Customer B’s account generated $34,943 in commissions and caused $88,760 in realized losses.

The level of trading that Herrera recommended in the two customers’ accounts was excessive. It was unsuitable for Customer A, and not in the best interest of either customer.

As a result, Respondent consented to the imposition of the following sanctions:

• A six-month suspension from associating with any FINRA member in all capacities;
• A $5,000 fine; and
• Restitution of $158,500 plus interest.

For a copy of the FINRA Disciplinary Action Details, click here.

In addition, Dennis Herrera has been the subject of two other FINRA disclosures:

• December 2022—“ Time frame: February 2017 – December 2021. Claimant alleges suitability, churning, breach of fiduciary duty, breach of contract, unauthorized trading, negligence, misrepresentation, omission of material facts” The damage amount requested was $407,235.00 and the customer dispute was withdrawn.
• March 2020—“ TIME FRAME: UNSPECIFIED. CLAIMANT ALLEGES UNSUITABILITY, BREACH OF CONTRACT, BREACH OF FIDUCIARY DUTY.” The damage amount requested was A$139,399.00 and the customer dispute settled for $56,817.89.

For a copy of Dennis Herrera’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

Excessive trading often occurs when a Financial Advisor puts his or her interests ahead of the clients and makes transactions solely for the purpose of generating commissions. Financial Advisors have a regulatory duty to recommend suitable investment strategies. One of the components of the suitability analysis is quantitative suitability.

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation. Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.