The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Dennis Beeby. According to his publicly available FINRA BrokerCheck report, Dennis Beeby has been the subject of a FINRA sanction.

Dennis Beeby was a California based securities broker. He worked in the securities industry for twenty-eight years. During his career, he was registered with eight different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

  • Remington Securities (1989-1990)
  • Pacific Capital Partners (1990-1996)
  • Nexcore Capital (1996-2009)
  • American Beacon Partners (2009-2011)
  • Allied Beacon Partners (2011-2013)
  • EDI Financial (2013-2016)
  • Lightpath Capital (2016-2018)

The Allegations

Dennis Beeby was officially sanctioned by FINRA in March 2018. The findings in this matter state that he allegedly failed to disclose his participation in private securities transactions to his member firm. He allegedly recommended the purchase of securities in oil and gas working interests to some of his customers. These securities were not offered through the firm. Four of his customers purchased a grand total of $700,000 in oil and gas working interests on Beeby’s alleged recommendation. He allegedly received $55,000 in commission for the trades. Due to these allegations, he was forced to repay the $55,000 in disgorgement, fined an additional $10,000, and suspended from acting as a securities broker in any fashion for a period of eight months.

What Does This Mean?

Securities brokers are not allowed to recommend privately traded investments outside the scope of their member firms without disclosing it to said member firm. This is because these types of investments can very easily create significant conflicts of interest for securities brokers. These types of investments are often unsuitable for investors and serve to be very beneficial to the securities broker recommending them. Securities brokers like Dennis Beeby might find themselves recommending these types of securities to their member firm customers because they themselves already have a financial stake in said security, or because they are receiving cash incentives from a third party, or simply because these types of investments provide brokers with inappropriately high commissions when the transaction is executed. These motivations can easily lead to brokers recommending these private investments to customers that are not financially suited for them. It is the responsibility of the securities firm to prevent investors from being harmed in this manner. The fact that a securities broker forgoes disclosing their involvement to their securities firm does not free the firm from liability. Firms are supposed to have the necessary procedures in place designed to monitor their registered brokers and prevent them from engaging in any unauthorized activities.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Dennis Beeby, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.