A proposed settlement of $3 million in two class-action lawsuits against investment adviser Donald DeWaay and his now-shuttered securities broker-dealer in Clive will be the subject of a Jan. 30 hearing. So far, testimony in the case file has been interesting reading. Documents indicate:
• DeWaay had to borrow from a 401(k) pension fund to meet operating expenses at his Clive financial services campus. He also used northwest Iowa farmland as collateral against a separate loan to meet expenses.
• DeWaay was not always directly involved in his firms’ due diligence practices into investment products that were promoted for sale to clients.
• After testy exchanges during a deposition, one attorney said, “Can we take a break? I’m not feeling well. Can we take a break please?”