- 2008
Respondent was the President and Chief Executive Officer of John Dawson & Associates. He participated in a scheme to defraud in which he and others caused and directed: (1) fraudulent and fictitious stock and options trading in firm and customer accounts; (2) inventory “parking” in firm and customer accounts in order to conceal excessive or losing stock and options inventory positions; (3) inventory “kiting” between the “Average Price Account” and firm proprietary accounts in order to satisfy margin requirements and artificially inflate buying power in firm proprietary accounts; (4) fraudulent trade allocations by creating, assigning, and/or transferring profitable securities and options trades to certain firm, employee, and customer accounts, and losing trades to other accounts; and (5) the misappropriation and conversion of firm and customer funds. He was also criminally convicted and sentenced to 65 months in prison.
