Dean Patrick McDermott (CRD #1731834) Has Multiple Disclosures on FINRA BrokerCheck

Dean Patrick McDermott (CRD #1731834) is a broker and investment adviser with disclosures on FINRA BrokerCheck. We reviewed his BrokerCheck report on May 11, 2026. It reflects one regulatory event, one civil event, and one customer dispute. If you invested with Dean McDermott and have concerns, keep reading.

BrokerCheck link: BrokerCheck

BrokerCheck report: BrokerCheck Report (PDF)

Regulatory Actions

Dean McDermott’s FINRA BrokerCheck Report reflects one regulatory action disclosure. A summary of the disclosure is below:

On January 30, 1998, the SEC entered a final regulatory action. Dean McDermott’s FINRA BrokerCheck Report states that the matter involved Old Naples Securities, Inc. It also involved a bond trading program. The SEC order found that respondents raised at least $4.8 million. Those funds were raised for bond trading programs. The order also found that James Zimmerman operated a Ponzi scheme. It said he misused customer funds. The SEC said the respondents relied only on oral statements. It also said they did not make a sufficient investigation. The matter resolved by consent. A cease-and-desist/injunction was ordered by the SEC. Dean McDermott’s broker statement said Zimmerman pleaded guilty to felony counts. It also said Zimmerman admitted engineering the scheme.

Civil Charges

Dean McDermott’s FINRA BrokerCheck Report reflects one civil event disclosure. A summary of the disclosure is below:

On September 13, 2019, the SEC filed a civil action in federal court. Dean McDermott’s FINRA BrokerCheck Report states that the case involved McDermott Investment Advisors, LLC. It also involved unit investment trust purchases from March 2013 through December 2014. The SEC claimed clients paid sales charges. It said a lower-cost version of the same security was available. On July 12, 2022, a jury found that Dean McDermott violated Sections 206(1) and 206(2). Those sections are part of the Investment Advisers Act. The jury also found him liable for aiding and abetting the firm’s violations. On October 28, 2022, the court entered final judgment. It ordered $143,379.33 in disgorgement. It also ordered $50,983.60 in prejudgment interest and a $50,000 civil penalty against Dean McDermott.

Investor Disputes / Customer Complaints

Dean McDermott’s FINRA BrokerCheck Report reflects one pending customer dispute disclosure. A summary of the dispute is below:

On March 19, 2026, customers alleged suitability and due diligence issues. They also alleged breach of fiduciary duty, negligence, misrepresentations and omissions, failure to supervise, and breach of contract. The dispute involved a Delaware Statutory Trust. Customers purchased it in August 2022 as part of a tax-advantaged 1031 exchange. They sought $227,000 in damages. Dean McDermott’s FINRA BrokerCheck Report lists the product as a Delaware Statutory Trust. The arbitration is pending through FINRA Dispute Resolution. The case number is 26-00555. Dean McDermott’s broker statement says he was not the broker of record. It also says he denies wrongdoing and intends to defend the matter.

Rule Summary #1: FINRA Rule 2111 (Suitability)

FINRA Rule 2111 (Suitability) requires a reasonable basis for a covered recommendation. The rule considers the customer’s profile and investment risks. Disputes about DSTs or other complex products may ask whether the investment matched the customer.

Rule Summary #2: FINRA Rule 3110 (Supervision)

FINRA Rule 3110 requires firms to maintain a supervisory system. It also requires written procedures designed to support compliance. Failure-to-supervise allegations often focus on whether the firm reviewed the activity in a reasonable way.

Why This Matters to Investors (Regulation Best Interest)

Regulation Best Interest (Reg BI) is a U.S. securities regulation. It strengthens the standard of conduct that broker-dealers owe to retail investors. It applies when they recommend securities transactions or investment strategies. The U.S. Securities and Exchange Commission adopted Reg BI. It became effective on June 30, 2020. Reg BI aims to protect investors while preserving access to brokerage products and services.

Reg BI requires broker-dealers and financial advisors to act in a retail customer’s best interest at the time of a recommendation. They must not place their own financial or other interests ahead of the customer’s. This standard is higher than the older “suitability” rule. Suitability meant a recommendation only had to be appropriate. It did not have to be the best option or free of conflicts.

Reg BI has four key obligations:

Disclosure Obligation – Broker-dealers must disclose material facts about the relationship and the recommendation. This includes fees, the scope of services, and conflicts of interest.

Care Obligation – Broker-dealers must use reasonable diligence, care, and skill. They must consider costs, risks, and alternatives when making a recommendation.

Conflict of Interest Obligation – Firms must identify conflicts of interest. They must disclose them and mitigate or eliminate them. This includes conflicts that create incentives to favor one product over another.

Compliance Obligation – Firms must maintain policies and procedures. Those policies should be designed to ensure compliance with Reg BI as a whole.

Reg BI applies to each recommendation. It is not a continuous duty like the fiduciary standard for registered investment advisers. Even so, it narrows the gap. It puts more focus on costs, conflicts, and investor-focused decision-making.

Overall, Regulation Best Interest promotes transparency. It also aims to improve the quality of investment recommendations. It is designed to reinforce trust between retail investors and broker-dealers in the U.S. securities markets.

Background Information (from BrokerCheck)

Based on his FINRA BrokerCheck report, Dean McDermott:

Is currently registered with McDermott Investment Services, LLC. He is also registered with McDermott Investment Advisors, LLC.

Has passed the Securities Industry Essentials (SIE) exam. Dean McDermott has also passed several principal, product, and state law exams.

Was previously registered with firms that include Steven L. Falk & Associates Inc., Coordinated Capital Securities, Inc., and Old Naples Securities, Inc.

Kurta Law Can Help

If you have worked with Dean McDermott and have concerns, Kurta Law may be able to help. The firm can help you evaluate your legal options. A securities attorney can review possible causes of action. The attorney can also assess whether your losses may be recoverable through FINRA arbitration or other avenues. To speak with Kurta Law, call 877-600-0098 or email info@kurtalawfirm.com.

Helpful resources: Securities Attorney | Unsuitable Investments

For nearly 20 years, Kurta Law has advocated for investors. The firm helps hold financial professionals accountable. Our firm represents clients nationwide in securities arbitration and related disputes. If you believe a broker or firm mishandled your account, an attorney can review the facts. The attorney can also explain possible next steps.