The Financial Industry Regulatory Authority ordered an ex-broker to pay millions in compensatory damages to former clients who accused him of fraud, InvestmentNews reports.
A panel of FINRA arbitrators issued their decision in the case of Dana Vietor, who was a registered representative in the Iowa and Texas offices of CFD Investments.
According to FINRA, Vietor solicited investments to purchase a building for cancer treatment in Dallas from 2012 through 2020 through an entity called SRS Holdings. The company rented the building to other firms that actually delivered the treatment and as a result investors said they did not receive the returns they were promised.
The claimants also said the investments were unsuitable and risky, and said that Vietor and CFD Investments did not provide them with financial information after they surrendered annuities for the investments. They asserted that Vietor and CFD did not advise them of the financial condition of their investments and took no supervisory action to protect them.
In their claim with FINRA, 13 investors cited causes of action that included breach of contract, breach of fiduciary duty, fraud-nondisclosure, misrepresentation, and negligence.
\The FINRA arbitration panel ordered Vietor to pay a total of $5.7 million, a sum that included $4.3 million in compensatory damages and $1.4 million attorneys’ fees to 12 of the investors. One investor’s claim was dismissed. Vietor’s attorney said they disagree with the award, deny any wrongdoing and are reviewing options to vacate the award.
Vietor, who resigned from CFD following fraud allegations, was barred from the industry by FINRA in 2020.
The attorneys at Lewitas Hyman have decades of experience dealing with securities fraud cases and have a deep understanding of how capital markets and financial service firms are intended to work to protect investors. We bring a unique level of knowledge and experience when representing the rights of investors, including resolving cases through arbitration and litigation when necessary. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Lewitas Hyman at (844) 651-2643 or through our online contact form for a no-cost evaluation of your matter.