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Dempsey Lord Smith, LLC (“Dempsey Lord Smith”) (CRD#141238) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated Dempsey Lord Smithand its regulatory and customer complaints, and we have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against organizations like Dempsey Lord Smith.

If you believe you have a claim against Dempsey Lord Smith, you should strongly consider hiring an investment fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.

Can I Sue Dempsey Lord Smith?

If you’ve lost money caused by Dempsey Lord Smith and/or its employees’ misconduct then the answer is, YES, you can sue Dempsey Lord Smith, but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Dempsey Lord Smith in FINRA arbitration proceedings but WIN that arbitration. The easiest way to know if you have a viable case against Dempsey Lord Smith is to call Attorney Pearce at our office at 800-732-2889.

Investment Losses? We Can Help

Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.

Get A Free Consultation

or, give us a ring at (800) 732-2889.

Robert Pearce

What is Dempsey Lord Smith?

Dempsey Lord Smith (CRD#141238) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.

As a registered broker-dealer, Dempsey Lord Smith is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.

A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.

Dempsey Lord Smith Has Many Different Regulatory Problems 

Dempsey Lord Smith’s rapid growth has not been without consequences. There have been approximately 6 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA) for a violation(s) of investment-related rules or regulations. In addition, there have been customer complaints against Dempsey Lord Smith for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record. 

A Brief Overview of Some of the Regulatory Problems Dempsey Lord Smith Has Faced Over the Years*

Dempsey Lord Smith has been repeatedly censured, warned, and fined for its own misconduct and failure to supervise its army of financial advisors. * A few of the notable FINRA Sanctions for its Supervisory Failures are below:

State of Illinois Department of Insurance Fines Dempsey Lord Smith for Incorrect Answer on Insurance License Application

Brief Overview: State of Illinois Department of Insurance initiated an investigation into Dempsey Lord Smith concerning the submission of an application for a non-resident insurance license for the State of Illinois. According to the Department, the application asked the question regarding prior regulatory disclosures, and the firm inadvertently answered “no” to that question. Dempsey Lord Smith resolved the issue by paying a fine.

FINRA Censures and Fines Dempsey Lord Smith for Sales of Unsuitable Limited Partnership Interests

Brief Overview: Without admitting or denying the findings, Dempsey consented to the sanctions and to the entry of FINRA findings that it sold limited partnership interests in a company without informing the customers that the issuer had not timely filed its audited financial statements with the SEC or the reasons for the delay. According to FINRA, this was material information that should have been disclosed. Indeed, the firm’s sales of the limited partnership interests in the company totaled $323,000, and the firm received a total of $25,840 in commissions from the sales. FINRA also stated that registered representatives of the firm recommended and sold securities for the issuer that were unsuitable in light of the customers’ investment profiles. As a result, the firm was censured and fined $70,000.

FINRA Censures and Fines Dempsey Lord Smith for Failure to Set Up Escrow Accounts in Connection with Three Private Placement Offerings

Brief Overview: Without admitting or denying the findings, Dempsey Lord Smith consented to the sanctions and to the entry of FINRA findings that the firm failed to set up escrow accounts in connection with three private placement contingent offerings, even though the firm participated in each of the offerings and accepted customer funds. According to FINRA, the firm and the principal allowed investor funds to be commingled in attorney escrow accounts established by the issuers. FINRA further stated that the principal forwarded seven emails to prospective investors in connection with solicitations to sell bonds issued by an affiliate of the firm, and such emails contained statements that were unfair and unbalanced. Moreover, FINRA stated that the firm failed to enforce its written supervisory procedures when it failed to ensure that a proper escrow account was established for each of the three contingent offerings in contravention of applicable securities laws and regulations and its written supervisory procedures. As a result, the firm was censured and fined.

*Above are only some of the regulatory disciplinary actions filed against Dempsey Lord Smith by FINRA. NASAA and other state securities regulator investigations and enforcement actions account for another 3 BrokerCheck disclosures.

Dempsey Lord Smith Customer Complaints

There have been scores of customer complaints filed against Dempsey Lord Smith stockbrokers and investment advisors over the years. We have launched many investigations of current and former Dempsey Lord Smith advisors:

If you have lost money investing with any of these Dempsey Lord Smith advisors or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call us at 800-732-2889.

Why Does Dempsey Lord Smith Have So Many Regulatory Problems And Customer Complaints?

Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of many franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.

The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers. 

Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.

These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.

Did Dempsey Lord Smith Advisor Misconduct Cause You Investment Losses?

When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Dempsey Lord Smith is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Dempsey Lord Smith without representation with an attorney about their complaints and have their complaints denied.

Related Read: Can You Sue Your Brokerage Firm?

Investment Losses? We Can Help

Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.

Get A Free Consultation

or, give us a ring at (800) 732-2889.

Robert Pearce

Consult With An Attorney Who Recovers Investment Losses Caused By Dempsey Lord Smith Today!

The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Dempsey Lord Smith cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.

Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.

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Robert Wayne Pearce

Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $170 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.

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