Michael Dolan—Outside Business Activity

New York investor rights attorneyMichael Timothy Dolan Allegedly Took Part in the Sale of at Least $850,000 of membership interests in a hedge fund to six individuals without Notice to Dougherty & Co.; Five of the Six Said Individuals were Allegedly Dougherty & Co. Customers

Michael Dolan, between October 2012 and October 2013, allegedly participated in the sale, without proper prior notice to Dougherty & Co., of at least $850,000 of membership interests in a hedge fund, Pennington Capital Management (PC), according to a Complaint from FINRA’s Department of Enforcement currently under review by attorneys Alan Rosca and James Booker.

The aforementioned Complaint further details how said sales were allegedly made to six individuals, five of whom were Dougherty & Co. customers and that said transactions allegedly violate NASD and FINRA Rules.

Back in October of 2010 Pennington Capital started in Minneapolis with alleged claims of giving investors a diverse portfolio with exposure to publicly traded, small, and mid-capitalization equity investments, the Complaint notes.

Pennington Capital is operated and managed by a friend of Dolan’s, according to the Complaint.

Dolan, however, was allegedly not an assigned rep to PC Management’s brokerage account, and also allegedly took in commissions from the account for producing and providing research, the Complaint notes.

What is more, Pennington Capital’s manager also held a personal account at Dougherty & Co. which was designated for Dolan, and in May 2011, PC allegedly began to sell non-managing membership interests in the firm (PC) to accredited investors as a package of an exempt offering made under provisions of the Securities Act, the Complaint reports.

Furthermore, Dougherty & Co. did not approve the offering for sale by its registered representatives, the Complaint states.

Dolan, allegedly without providing notice to Dougherty, began allegedly soliciting his customers at Dougherty & Co. to invest in the offering, the Complaint reports.

The Peiffer Rosca Wolf securities lawyers are investigating Michael Dolan’s alleged unauthorized sale of securities.

Michael Dolan Allegedly Induced a Customer to Invest $300,000 in Pennington Capital Management without Properly Disclosing His Activity

Michael Dolan, around October 8, 2012, allegedly sent an e-mail to a firm customer, known only as GN, which attached investor information regarding PC, according to a Complaint from FINRA’s Department of Enforcement presently being examined by attorneys Alan Rosca and James Booker.

Said missive also allegedly held three letters mailed to current investors detailing the fund’s investment strategy and performance, the Complaint notes.

This allegedly led to GN investing $200,000 in the offering, and by October 20, Dolan allegedly sent another message soliciting him to increase his investment, the Complaint notes.

Just a few days afterward, GN then sunk in an additional $100,000 in the aforementioned offering, and Dolan also allegedly provided GN with payment directions for the next investment, the Complaint reports.

Hence, between October 2012 and October 2013, Dolan allegedly took part in the offering by making direct solicitations to GN to invest in the offering, and also allegedly provided GN with investor materials related to the offering, the Complaint states.

What is more, Dolan allegedly forwarded a PC subscription agreement to GN, and also made work to facilitate two investments in the offering by providing payment instructions to GN and therefore Dolan allegedly participated in the offering, Dougherty & Co. customer GN invested a total of$300,000 in PC, the Complaint notes.

Therefore, by reason of the aforementioned behavior, Michael Dolan allegedly violated NASD Rules and therefore also violated FINRA Rules, the Complaint notes.

Hence, FINRA’s Department of Enforcement has requested that the Panel make findings of fact and conclusions of law that Dolan allegedly committed the violations charged and that one or more of the sanctions provided be imposed, including monetary sanctions and that Dolan bear such costs of proceeding as are deemed fair and appropriate  with FINRA Rules, the Complaint states.

Securities Lawyers Investigating

The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of unauthorized securities sales and are currently investigating Michael Dolan’s alleged unauthorized sale of securities. 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 Michael Dolan’s alleged unauthorized sale of securities may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or James Booker, for a free no-obligation evaluation of their recovery options, at 888-998-0520 or via e-mail at arosca@prwlegal.com or jbooker@prwlegal.com.

Alan Rosca (1157 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.