- June 27, 2020
- Western International Securities
Dennis Mehringer, Jr. (CRD # 722569) was a Financial Advisor at Western International Securities in Pasadena, California. Dennis Mehringer has been in the securities industry since 1981 and previously worked at First Allied Securities.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on Octobner 18, 2019, Dennis Mehringer was barred by FINRA for failing to cooperate in a FINRA investigation regarding his involvement in “possible unsuitable trading and other misconduct.” According to the FINRA sanction:
“Without admitting or denying the findings, Mehringer consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA during the course of an examination involving possible unsuitable trading and other misconduct.”
For a copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2019061994701%20Dennis%20A.%20Mehringer%2C%20Jr.%20CRD%20722569%20AWC%20va%20%282019-1574036374424%29.pdf
In addition, Dennis Mehringer has been the subject of twelve (12) customer complaints during his career, alleging sales practice misconduct. Among the customer complaints against Dennis Mehringer include the following:
• February 2020—”Unsuitability; Breach of Fiduciary Duty.” Alleged damages are $3.08 million and the matter remains pending.
• May 2019—”Unsuitability; Misrepresentation & Fraud; Unauthorized Trading; Breach of Fiduciary Duty.” The matter was settled for $225,000.
• November 2018—”Unsuitability; Breach of Fiduciary Duty.” The matter was settled for $1 million.
• May 2017—”Customer unhappy with performance of fixed income investment.” The matter was settled for $62,500.
• March 2017—”Unsuitable recommendations.” The matter was settled for $45,000.
• March 2014—”EXCESSIVE & IMPROPER COMMISSION CHARGES IN ADDITION TO UNAUTHORIZED TRADING during the period 2010 through 2013.” The matter was settled for $290,000.
• August 2012—”OVER CONCENTRATION WITH INADEQUATE PUT COVERAGE.” The matter was settled for $81,296.
For a copy of Dennis Mehringer’s CRD, click https://brokercheck.finra.org/individual/summary/722569#disclosuresSection.
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.
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.
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:
• Other investments
• Financial situation and needs
• Tax status
• Investment objectives
• Time horizon
• Liquidity needs
• Risk tolerance
• Any other information disclosed by the customer
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 email@example.com.