If you have lost money in the stock market due to fraud, misrepresentation, negligence, or for other reasons, we can help you. We have successfully recovered over $250 million in FINRA securities arbitrations.*
Need Legal Help? Contact Us. Call +1 (888) 997-9956
The Securities Arbitration Law Firm of KlaymanToskes announced today that it is investigating claims against Dawson James Securities, on behalf of investors who sustained losses as a result of investing with Jason T. Knapp. Last month, Knapp was charged with allegedly running a Ponzi scheme through SteepleChase Group, by promising returns of 18 to 20 percent for short-term investments. From September 2008 through June 2012, Knapp was registered with Dawson James Securities a brokerage firm registered with the Financial Industry Regulatory Authority (“FINRA”). Under FINRA Rules, Dawson James was obligated to properly supervise the activities of Knapp during the time he was registered with the brokerage firm. Accordingly, we believe Dawson James may be liable for failing to supervise Knapp’s activities while registered at the firm, and that it could be held responsible for compensating customers of Knapp for their losses.
Knapp was arrested in New York, and charged with second degree grand larceny, a felony, for allegedly stealing $60,000 from an Indian Lake, New York resident. According to a New York State Investigator, Knapp solicited money from clients and friends to invest in SteepleChase. Instead, he was paying some investors with money he received from later investors, and used some of the money to travel and regularly visit casinos, police said. “He created fictitious documents for an investment that did not exist,” the Investigator said. “It was basically a Ponzi scheme.”
The New York Investigator said the victim in Indian Lake was a friend of Knapp’s, and other friends and clients had invested tens or hundreds of thousands of dollars. The New York Investigator stated that he was aware of several people who are out “hundreds of thousands of dollars.” Several of the victims are said to be located in Boca Raton, Florida, where Dawson James is based.
In June 2012, Knapp was terminated from Dawson James. According to Knapp’s CRD Report, “the firm determined that [Knapp] had falsified internal documents as well as documents that were provided to customers of the firm. The firm also determined that [Knapp] had solicited co-workers and one firm client to participate in investments away from the firm without knowledge or approval of the firm. Furthermore, a client alleged an unauthorized transaction that [Knapp] could not successfully refute.”
If you sustained losses by investing with Knapp, contact our law firm for a free consultation. Our toll-free number is 888-997-9956.