SEC Announces New Fraud Charges for Dawn Bennett

Dawn Bennett Charges involve Apparel Business and $20 Million Ponzi Scheme

Financial Advisor Dawn Bennett, who was barred from the securities industry by the SEC in 2016 for exaggerating her advisory firm’s assets under management, was hit with a new set of fraud allegations this week.

The White Law Group has represented several of Dawn Bennett’s clients and continues to investigate the liability that her FINRA registered employer, Western International Securities, may have for failure to properly supervise her.

The Securities and Exchange Commission announced Tuesday that it is charging Bennett with defrauding investors and spending their money on herself. Additionally, the SEC alleges Bennett with making Ponzi-like payments to earlier investors in the scheme.

Bennett, who was a top-ranked Barron’s advisor for three years, allegedly raised more than $20 million by selling notes issued by her company, DJB Holdings LLC, a luxury sports apparel firm located in Washington, DC. Purportedly, Bennett sold the notes to 30 investors, some who were elderly, while working as an independent broker at Western International Securities.

The SEC alleges Bennett exaggerated the safety of the notes and success of her firm, claiming it was a profitable business able to pay annual returns as high as 15 percent.

Last year, the SEC barred Bennett for life from the securities industry and ordered her and registered investment adviser Bennett Group Financial Services to pay $4.1 million in fines and disgorgement.

According to her FINRA BrokerCheck report, Bennett has seven pending customer complaints including allegations of unsuitable investments and misrepresentations. Three were filed since May 2016. Her broker report says that Bennett was permitted to resign in December “following discovery of promissory notes with firm customers.”

For more information on the Dawn Bennett investigation, visit Dawn Bennett Loses Again.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit  For a free consultation with a securities attorney, please call the firm at 888-637-5510.




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