Another FA Charged in Dawn Bennett Fraud Case
The SEC has charged a financial advisor with helping radio personality Dawn Bennett and her company make fraudulent sales of convertible and promissory notes, InvestmentNews writes.
Bradley Mascho, who’s been registered with Western International Securities since 2009, allegedly aided and abetted fraud perpetrated by Bennett and her company, DJB Holdings, where Mascho once served as chief operating officer, according to the publication. The SEC also added Mascho as a defendant to a complaint filed in August against Bennett, InvestmentNews writes. That complaint alleged that from December 2014 through July 2017 Bennett raised more than $20 million from at least 46 investors through the sale of the notes by lying to them about the company’s finances, the risks associated with the product and her intentions for the use of the funds. Bennett allegedly used the money on jewelry, the services of a mystic and a $500,000-per-year suite rental at a Dallas stadium, the SEC said.
In the amended complaint, the regulator alleges Mascho helped with the fraud by preparing false financial statements and offering materials, lying to regulators, helping Bennett target clients at his brokerage and making bogus backdated notes and false affidavits to help hide certain note sales, according to InvestmentNews. The U.S. Attorney’s Office for the District of Maryland, meanwhile, unsealed criminal charges against Mascho in a parallel case, the publication writes.
The August complaint against Bennett came a little over a year after the SEC had barred her from the industry and ordered her to pay $4 million in penalties and disgorgement over allegations she exaggerated her company’s assets under management by up to $1.5 billion in financial publication Barron’s as well as on her radio show “Financial Myth Busting with Dawn Bennett.”