Western International Stockbroker Barred In Investigation
Dennis Albert Mehringer Jr. of Pasadena California a stockbroker formerly registered with Western International Securities Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on accusations that Mehringer refused to comply with FINRA’s investigation into whether he effected trades that were unsuitable for customers of Western International Securities. Letter of Acceptance Waiver and Consent No. 2019061994701 (Oct. 18, 2019).
According to the AWC, a FINRA investigation into Mehringer’s activities began around March of 2019 in regard to Mehringer’s inappropriate trading in customer accounts and other infractions. FINRA sought to determine from Mehringer’s recorded testimony whether he executed unsuitable trades in customer accounts from January of 2017 until May of 2018 contrary to securities rules.
Mehringer was sent a letter from FINRA on September 9, 2019 which called upon him to provide recorded testimony according to Rule 8210. After counsel was obtained by Mehringer, FINRA was made aware that the stockbroker received the request but would not provide recorded testimony at any point in FINRA’s investigation. FINRA found that Mehringer’s refusal to testify constituted violations of FINRA Rules 2010 and 8210.
This is not the first time that Mehringer has been subject of a FINRA disciplinary action regarding his investment recommendations. Specifically, Mehringer was fined $50,000.00 and barred from associating with any FINRA member based upon findings of the stockbroker giving customers bad investment advice. Department of Enforcement v. Dennis A. Mehringer Jr. Disciplinary Proceeding No. 2014041868001 (Apr. 30, 2018).
According to the Decision: an inappropriate short-term trading strategy had been utilized by Mehringer involving mutual funds; trades were executed by him in a customer’s account without authorization; fiduciary obligations had been violated by him through his failure to ensure that funds were appropriately utilized; false information was provided by the stockbroker in regard to the assets of a charity; and Mehringer settled a customer’s complaint away from the firm and without its knowledge or consent.
FINRA Public Disclosure additionally reveals that Mehringer is referenced in eleven customer initiated investment related disputes containing allegations of his violative conduct while employed with securities broker dealers including First Allied Securities and Western International Securities. Specifically, on July 24, 2015, a customer initiated investment related complaint concerning Mehringer’s activities was resolved for $47,000.00 in damages based upon accusations that Mehringer neglected to effect a trade according to the customer’s instructions.
Mehringer is referenced in another customer initiated investment related arbitration claim which was settled for $45,000.00 in damages supported by allegations that investment recommendations made by the stockbroker were not suitable specifically with respect to a promissory note investment that the customer sustained losses on. FINRA Arbitration No. 14-02643 (May 24, 2016). On May 17, 2017, a customer initiated investment related complaint in regard to Mehringer’s conduct was resolved for $62,250.00 in damages founded on accusations of an inappropriate and poorly performing corporate debt investment being held in the customer’s account during the period in which Mehringer was employed by Western International Securities Inc.
Also, a customer filed an investment related arbitration claim concerning Mehringer’s activities where the customer sought $1,761,558.00 in damages based upon allegations that mutual fund and stock trades effected by the stockbroker failed to be suitable, and fiduciary obligations were violated by way of Mehringer’s inappropriate trading. FINRA Arbitration No. 19-00667 (Mar. 18, 2019). Mehringer is the subject of another customer initiated investment related arbitration claim in which the customer sought $433,079.00 in damages supported by accusations including breach of fiduciary duty; unauthorized trading; misrepresentation; unsuitability; and fraud as it pertained to mutual fund, corporate debt and stock transactions. FINRA Arbitration No. 19-01253 (May 22, 2019).
On May 7, 2018, Mehringer’s employment with Western International Securities Inc. was terminated.