Securities Fraud Lawyer Blog
David Gott suspended for outside business activities.
David Gott, a registered representative from Tipton, Iowa, formerly with Ausdal Financial Partners, Inc., was suspended from FINRA membership as a result of an investigation into his selling of private investment equities to customers without obtaining his firm’s approval, which is a violation of FINRA rules. Gott entered into an acceptance waiver and consent agreement with FINRA in which he neither admitted nor denied the findings. He was suspended for six months and fined $5,000.
In July 2017, Gott agreed to the suspension and FINRA published its findings. The report said Gott sold more than $546,000 of private capital to clients and did not notify his firm. FINRA found that Gott’s firm also profited from selling these investments. However, Ausdal Financial Partners, Inc. does not allow their brokers to take part in these types of transactions without their written approval. Gott did not follow the correct guidelines in this process,and compromised his position with the firm.
David Gott’s registration and disciplinary history
To lawfully sell investments to the public, one must either be registered or exempt from registration.
David Gott was registered with Ausdal Financial Partners, Inc. from November 2012 to October 2015 and Berthel, Fisher & Company Financial Services, Inc. from October 1992 to November 2012.
According to FINRA’s CRD disclosure report, Gott has been the subject of four judgement liens, two financial compromises, and two regulatory investigations.
FINRA is the primary regulator for broker dealers and registered representatives in the United States. FINRA’s role is to promulgate standards and practices for the brokerage industry and to ensure compliance with its rules by licensed entities and individuals.
FINRA has two primary means to ensure compliance with the securities laws; by means of an enforcement unit that investigates and disciplines wrongdoing, and through the establishment of an arbitration forum where investors can resolve disputes against broker dealers. FINRA’s arbitration forum, FINRA Dispute Resolution Inc. is the largest arbitration forum in the country for resolving investor disputes, and typically processes over 10,000 filings annually.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery. For the past 24 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via fraudulent and unsuitable investment transactions. During that time, we have recovered money for over one thousand individuals, pension plans, trusts and companies. The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $40,000,000.