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Serious Elder Financial Abuse Allegations Against Financial Consultant
David Norman Dunn (CRD# 2819556), currently a registered broker and investment adviser with Raymond James & Associates in Walnut Creek, California, is facing serious allegations related to elder financial abuse. According to his FINRA BrokerCheck report, Dunn is the subject of a pending customer complaint alleging financial elder abuse, unauthorized and unsuitable stock sales, and failure to supervise and act appropriately between 2016 and 2021 during his employment at Oppenheimer & Co. Inc.
The formal complaint, filed in January 2025, involves substantial alleged damages of $8,800,000, highlighting the serious nature of these accusations. While these allegations remain unproven pending investigation, they raise significant concerns about potential misconduct and underscore the importance of vigilance when working with financial professionals.
Professional Background and Current Employment Status
David Norman Dunn began his career in the securities industry in December 1996 and currently works at Raymond James & Associates, Inc. (CRD# 705) in Walnut Creek, California. He joined Raymond James in January 2023 after spending over 16 years at Oppenheimer & Co. Inc., where the alleged misconduct occurred.
Dunn maintains an extensive registration footprint, being licensed in 19 U.S. states and territories and registered with five self-regulatory organizations, including FINRA, NYSE American LLC, Nasdaq PHLX LLC, Nasdaq Stock Market, and the New York Stock Exchange. He holds dual registration as both a broker and investment adviser in California and Texas, although his investment adviser registration in Texas is under restricted approval.
Prior to his tenure at Oppenheimer & Co. Inc. (January 2007 to January 2023), Dunn was affiliated with Wachovia Securities, LLC from December 1996 to January 2007. His long-standing career in the industry spans over 28 years, during which he has passed several securities examinations, including the Securities Industry Essentials Examination (SIE), General Securities Representative Examination (Series 7), Uniform Investment Adviser Law Examination (Series 65), and Uniform Securities Agent State Law Examination (Series 63).
Understanding the Serious Nature of Elder Financial Abuse
The allegations against David Norman Dunn touch on one of the most concerning forms of financial misconduct: elder financial abuse. This type of exploitation targets vulnerable older adults and can have devastating consequences for their financial security and well-being. Elder financial abuse typically involves:
The unauthorized use of an elderly person’s assets, which may include making transactions without proper authorization or consent.
Recommending unsuitable investments that do not align with an elderly client’s financial objectives, risk tolerance, or needs—often pushing high-commission products that primarily benefit the adviser.
Excessive trading (churning) in an elderly client’s account to generate commissions rather than to benefit the client.
Failure to disclose material information about investments, including risks, fees, and potential conflicts of interest.
Taking advantage of diminished capacity or cognitive decline that may affect an elderly person’s ability to make informed financial decisions.
The $8.8 million in alleged damages in this case reflects the potentially catastrophic impact such misconduct can have on elderly investors’ retirement savings and financial security. For many older adults, such losses are irreparable as they have limited time and opportunity to rebuild their assets.
Unauthorized and Unsuitable Stock Sales
A central element of the complaint against Dunn involves allegations of unauthorized and unsuitable stock sales. These allegations raise serious questions about whether proper protocols for investment recommendations and trade approvals were followed.
Unauthorized trading occurs when a broker executes transactions in a client’s account without obtaining proper prior authorization. Unless a broker has discretionary authority—which must be formally granted in writing—they must receive client approval before executing trades. Unauthorized trading violates FINRA Rule 2010, which requires brokers to observe high standards of commercial honor and just and equitable principles of trade.
The allegation of unsuitable stock sales is equally concerning. Under FINRA Rule 2111, financial professionals have a fundamental obligation to recommend only those investments that are appropriate for the specific investor based on their:
Financial situation and needs Investment objectives Risk tolerance Time horizon Liquidity requirements Tax considerations Other relevant factors that make up their investment profile
Recommendations of equity securities (stocks) that were inappropriate for an elderly investor—particularly if they involved excessive concentration in volatile stocks, speculative investments, or illiquid securities—would represent a serious breach of this suitability obligation.
Regulatory Framework and Professional Obligations
Financial advisers like David Norman Dunn operate within a comprehensive regulatory framework designed to protect investors. The allegations in this case potentially implicate several key regulatory requirements:
Fiduciary Duty
As a registered investment adviser (in addition to his broker role), Dunn would have a fiduciary duty to clients in advisory relationships. This represents the highest standard of care under the law and requires:
Putting clients’ interests ahead of his own Providing full and fair disclosure of all material facts Avoiding conflicts of interest when possible and fully disclosing and managing them when unavoidable Providing suitable investment advice Having a reasonable basis for recommendations
FINRA Rules
As a FINRA-registered broker, Dunn is bound by numerous rules designed to protect investors, including:
Rule 2010: Standards of Commercial Honor and Principles of Trade Rule 2020: Use of Manipulative, Deceptive or Other Fraudulent Devices Rule 2111: Suitability Rule 2090: Know Your Customer Rule 3270: Outside Business Activities of Registered Persons
Senior-Specific Protections
Both FINRA and the SEC have implemented enhanced protections specifically for senior investors:
FINRA Rule 2165 permits members to place temporary holds on disbursements when financial exploitation is suspected FINRA Rule 4512 requires members to make reasonable efforts to obtain the name of a trusted contact person for a customer’s account The Senior Safe Act provides immunity to financial institutions and certain employees who disclose suspected elder financial abuse to covered agencies
The allegations against Dunn, if proven, would constitute serious violations of these regulatory requirements and professional standards.
Supervision Failures and Firm Responsibility
The complaint against David Norman Dunn also alleges “failure to supervise and act” during his time at Oppenheimer & Co. Inc. This raises important questions about the firm’s compliance systems and supervisory procedures.
Brokerage firms have a legal responsibility to reasonably supervise their registered representatives. This responsibility includes:
Establishing and maintaining a supervisory system reasonably designed to achieve compliance with applicable securities laws and regulations Implementing written supervisory procedures Conducting regular reviews of customer accounts to identify and address red flags Monitoring for unauthorized trading, unsuitable recommendations, and other potential misconduct Providing appropriate training to representatives Taking prompt action when misconduct is identified
If Oppenheimer & Co. Inc. failed to adequately supervise Dunn’s activities, the firm could potentially share liability for any investor losses resulting from his alleged misconduct. This concept, known as “failure to supervise” liability, is a critical aspect of investor protection in the securities industry.
Investors should understand that when they suffer losses due to broker misconduct, both the individual broker and the employing brokerage firm may be held accountable.
Warning Signs of Elder Financial Abuse for Investors and Families
The allegations against David Norman Dunn highlight the importance of recognizing potential signs of elder financial abuse. Family members, caregivers, and elderly investors themselves should be vigilant for the following warning signs:
Unusual or unexpected changes in account balances or financial statements Sudden changes in financial condition despite adequate income and resources Unexplained withdrawals or transfers from accounts New investments that do not align with the elderly person’s stated goals or risk tolerance Excessive trading activity in accounts New names added to accounts or as authorized traders Missing financial statements or account documents Unpaid bills despite adequate financial resources Sudden changes to wills, trusts, or powers of attorney Isolation from family members or previous advisers Reluctance or inability of the elder to discuss financial matters The financial adviser’s unwillingness to include family members in discussions when requested
Early detection of these warning signs can help prevent substantial financial losses and allow for timely intervention.
Legal Options for Recovery
If you or a loved one may have been affected by David Norman Dunn’s alleged misconduct or similar situations involving other financial professionals, several legal options are available for seeking recovery:
FINRA Arbitration
FINRA provides a specialized forum for resolving disputes between investors and brokers/brokerage firms. FINRA arbitration offers several advantages:
Generally faster and less expensive than court litigation Decisions are binding and difficult to appeal Arbitrators often have specialized knowledge of securities laws and industry practices Can be more private than court proceedings No requirement for physical appearance in the same jurisdiction as the broker
Securities Class Actions
In cases where numerous investors suffered similar harm, class action lawsuits may provide an efficient means of seeking recovery. This approach allows investors to pool resources and pursue claims collectively.
Direct Negotiation
Sometimes, brokerage firms are willing to resolve legitimate complaints through direct negotiation to avoid formal proceedings, preserve their reputation, and limit litigation costs.
Regulatory Complaints
Filing complaints with regulatory authorities such as FINRA, the SEC, or state securities regulators can trigger investigations and potentially lead to restitution programs for harmed investors.
Civil Litigation
In some cases, particularly those involving significant damages or complex facts, traditional civil litigation in state or federal court may be appropriate.
It’s important to note that statutes of limitations apply to these actions, so prompt consultation with an attorney experienced in securities law is crucial for preserving your rights.
Our Investment Fraud Recovery Practice
Our law firm specializes in representing victims of investment fraud, elder financial abuse, and broker misconduct. We have extensive experience handling cases similar to the allegations against David Norman Dunn and have recovered millions of dollars for our clients.
Our securities attorneys bring specialized knowledge and skills to these complex cases:
In-depth understanding of securities laws and regulations Experience with FINRA arbitration procedures and rules Ability to analyze account statements, trading records, and other financial documents Knowledge of industry standards and practices Access to expert witnesses who can evaluate damages and opine on appropriate standards of care Track record of successful recoveries against major brokerage firms
We handle all aspects of the recovery process, from the initial case evaluation through final resolution:
Comprehensive review of account documents and trading history Detailed analysis of potential damages Strategic planning for optimal recovery approach Preparation and filing of claims or complaints Representation through all phases of arbitration or litigation Settlement negotiations when appropriate Trial or final hearing advocacy when necessary
Our firm approaches each case with a commitment to achieving the best possible outcome for our clients while providing compassionate support through what can be a stressful process.
Contact Us for a Free Consultation
If you or a family member invested with David Norman Dunn at Oppenheimer & Co. Inc. between 2016 and 2021, or if you have concerns about potential elder financial abuse, unauthorized trading, or unsuitable investments by any financial professional, we encourage you to contact our experienced investment fraud attorneys for a confidential, no-obligation consultation.
Our attorneys will:
- Listen carefully to your situation Review your investment documents and account statements Provide an honest assessment of potential claims Explain your legal options in clear, straightforward terms Recommend the most appropriate course of action Answer all your questions without pressure or obligation
- There is no cost for the initial consultation, and we handle most investment fraud cases on a contingency fee basis, meaning you pay no attorney fees unless we recover money for you.
- Don’t delay in seeking advice about potential claims, as statutes of limitations may limit the time available to pursue recovery.
Call 800-950-6553 or complete our online form to schedule your no-obligation case evaluation.
