New charges against Dawn Bennett allege a $20 million scheme to defraud 46 investors

Ms. Bennett allegedly spent some of her ill-gotten gains on luxury goods, mystics and $500,000-a-year suite at AT&T Stadium in Dallas.
AUG 28, 2017

Like a soap opera, the saga of barred broker Dawn J. Bennett just keeps getting more lurid. Last time the former Barron's billion-dollar adviser made news was in July 2016, when the SEC barred her from the securities industry and ordered her and her firm, Bennett Group Financial Services, to pay more than $4 million in fines and disgorgement for exaggerating her firm's investment performance and assets under management to win over rich clients. The Securities and Exchange Commission filed a civil complaint on Monday against her and her retail sports apparel business, DJB Holdings, in federal court in Maryland for their role in what the SEC says was a fraudulent unregistered securities offering that raised more than $20 million from at least 46 investors from December 2014 to July 2017. In a parallel case, the U.S. Attorney's Office in Maryland unsealed criminal charges against Ms. Bennett. In its complaint, the SEC alleges that Ms. Bennett "largely targeted elderly and financially unsophisticated investors by materially misrepresenting the company's profitability and by claiming the company had resources to pay annual rates of return as high as 15%." The agency went on to say that Ms. Bennett used the proceeds of the securities sale for improper purposes, including payments to earlier investors in the nature of a Ponzi scheme, to service debt, and "a variety of luxuries, including jewelry, high-end clothing, mystics and a $500,000 annual lease for a luxury suite at AT&T Stadium in Dallas." The SEC is seeking to have Ms. Bennett and her company disgorge "all ill-gotten" gains from their activities, plus interest.

Latest News

Raymond James, Osaic laud new bank partnerships
Raymond James, Osaic laud new bank partnerships

A Texas-based bank selects Raymond James for a $605 million program, while an OSJ with Osaic lures a storied institution in Ohio from LPL.

Bessent backpedals after blowback on 'privatizing Social Security' comments
Bessent backpedals after blowback on 'privatizing Social Security' comments

The Treasury Secretary's suggestion that Trump Savings Accounts could be used as a "backdoor" drew sharp criticisms from AARP and Democratic lawmakers.

Alternative investment winners and losers in wake of OBBBA
Alternative investment winners and losers in wake of OBBBA

Changes in legislation or additional laws historically have created opportunities for the alternative investment marketplace to expand.

Financial advisors often see clients seeking to retire early; Here's what they tell them
Financial advisors often see clients seeking to retire early; Here's what they tell them

Wealth managers highlight strategies for clients trying to retire before 65 without running out of money.

Robinhood beats Q2 profit estimates as business goes beyond YOLO trading
Robinhood beats Q2 profit estimates as business goes beyond YOLO trading

Shares of the online brokerage jumped as it reported a surge in trading, counting crypto transactions, though analysts remained largely unmoved.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.