David D. Lewis– Failure to Establish, Maintain and Enforce Adequate Supervisory System and Written Supervisory Procedures

investors rights attorneysDavid D. Lewis Allegedly Failed to Establish, Maintain and Enforce Adequate Supervisory System and Written Supervisory Procedures

David D. Lewis allegedly failed to establish, maintain and enforce adequate supervisory system and written supervisory procedures, according to a recent Complaint from FINRA’s Department of Enforcement.

Said Complaint goes on to allege that Lewis, from March 2008 until February 2011, was the Chairman, Chief Executive Officer, Chief Compliance Officer of First Washington, and that he was responsible for establishing, maintaining and enforcing First Washington’s supervisory system.

David D. Lewis Fined $30K by FINRA for Failing to Establish, Maintain and Enforce Adequate Supervisory System and Supervisory Procedures

Three of First Washington’s customers allegedly engaged in a large number of high-risk options transactions, resulting in losses of approximately $2,853,924.29, all while David D. Lewis was responsible for establishing, maintaining and enforcing First Washington’s supervisory system, according to the FINRA Complaint.

What is more, the Complaint notes that a significant portion of the customers’ losses could have purportedly been prevented if Lewis had established, maintained and enforced an adequate supervisory system and WSPs. As a result of the aforementioned behavior, Lewis has been suspended and fined $30,000 and fined by FINRA.

It should also be noted that Lewis accepted and consented, without admitting or denying the FINRA findings solely for the purposes of the FINRA proceeding and any other proceeding brought by or on behalf of FINRA, according to the AWC.

The Peiffer Rosca Wolf Securities Lawyers Often Assist Investors

The Peiffer Rosca Wolf securities lawyers assist investors who lose money as a result of inadequate supervisory systems. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of inadequate supervisory systems are encouraged to contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1206 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.