Nicholas Shermeta of Minneapolis, Minnesota Indicted Regarding Dakota Plains Holdings
Have you lost money with financial advisor Nicholas Shermeta of Minneapolis, Minnesota? We are investigating allegations made by the Securities and Exchange Commission (SEC) against Nicholas H. Shermeta, a registered representative of Northland Securities. The SEC recently settled with Shermeta regarding allegations that he sold investments in Dakota Plains Holdings.
Nicholas Shermeta, and an entity that he controlled called Napa Properties LLC, was alleged to have sold investments in Dakota Plains Holdings. The SEC alleged that Dakota Plains was run by Ryan Gilbertson and Michael Reger, who were alleged to have manipulated the price of Dakota Plains’ stock. The SEC alleged that Shermeta solicited investors, but that he improperly brokered the trades through Napa Properties instead of his licensed broker-dealer, Northland Securities. To settle these allegations, Shermeta agreed to pay $75,000 disgorgement, $11,000 in interest, and a $50,000 penalty. Shermeta also agreed to a three-year suspension from the securities industry.
In April 2017, Nicholas Shermeta, along with Gilbertson and Douglas Hoskins, were criminally indicted for their respective roles in selling Dakota Plains Holdings stock. The SEC helped the U.S. Attorney’s Office in the District of Minnesota with its investigation.
Nicholas Shermeta was a financial advisor and registered representative of Northland Securities from November 2011 to October 2016. He worked at a branch office in Minneapolis, Minnesota. Shermeta’s BrokerCheck report discloses that he was the subject of a FINRA investigation in 2014 and paid a $25,000 fine related to that investigation.
Brokerage firms like Northland Securities have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado, the Seattle area, and Ann Arbor, Michigan. We represent investors in FINRA arbitration proceedings in all 50 states, including numerous investors in Minnesota in the past, such as victims of the Levi Lindemann scam. Our attorneys have represented over one thousand investors against many brokerage firms in the past.
Click to view: Shermeta, Nicholas SEC Order (1)
Click to view: Shermeta, Nicholas BrokerCheck 11.2.16 (1)
Click to view: Shermeta, Nicholas Criminal Indictment
If you lost money with Nicholas Shermeta or Northland Securities, please CONTACT US at 720-599-3505 for a free evaluation of your case.
Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.