MCWG Wins Summary Judgment for Securities Broker/Dealer

Mound Cotton partner Barry Temkin won summary judgment on behalf of a national securities brokerdealer in New York State Supreme Court in a case entitled Thomas Hennessy v. Peter J. Dawson et al.  The litigation, which spanned four years in both federal and state courts, originated from a Ponzi scheme perpetrated by former registered securities representative and current convicted prisoner, Peter Dawson. Dawson stole seven million dollars from over fifty customers by endorsing to himself and companies he controlled proceeds from loans on the plaintiffs’ properties.  While Dawson, the Ponzi scheme perpetrator, never worked for Mound Cotton’s client, the plaintiffs unsuccessfully alleged that the broker dealer was the “successor in interest” to a broker dealer with which Dawson had formerly been affiliated.  Since Dawson left the former firm prior to its transaction with Mound Cotton’s client, and since there was no stock transfer, the successor in interest theory was rejected and the complaint was dismissed.