Dana H. Davis (CRD #1707708, Centereach, New York)

An AWC was issued in which Dana H. Davis (CRD #1707708) was suspended from association with any FINRA member in all capacities for 12 months and ordered to pay $75,000 in deferred partial restitution to customers. In light of Davis’ financial status, no monetary fine has been imposed. Without admitting or denying the findings, Davis consented to the sanctions and to the entry of findings that he recommended unsuitable use of margin to effect trades in the accounts of customers who were not experienced or sophisticated investors and did not understand margin. The findings stated that Dana H. Davis recommended the extensive use of margin in his customers’ accounts to leverage additional buying power while charging commissions on both buy and sell transactions. Davis’ recommendations to engage in unsuitable trading on margin exposed his customers to significant risk, increased costs, and sizeable losses in their accounts. Dana H. Davis lacked a reasonable basis to believe that using margin in this way was suitable given the customers’ investment objectives, financial situation, and needs. In total, Davis’ customers realized trading losses of $108,016.82 and paid $150,067.15 in costs, commissions, and margin interest for trades executed on margin in their accounts. The suspension is in effect from April 3, 2023, through April 2, 2024. (FINRA Case #2019064511202)