Investors with former Clive-based broker dealer DeWaay Financial Network say other attorneys did not dig deep enough when they filed two class-action lawuits seeking to recoup investments that went sour.

Court documents filed last week in Decatur County District Court object to a proposed $3 million settlement in two class-action lawsuits that were filed in January 2012 against Donald DeWaay and the broker dealer he founded.

Among other things, the court filings, which represent about 20 investors who don’t want to be part of the class-action settlement, object to $750,000 in attorneys fees that would be carved out of the settlement and claim that DeWaay assets available for distribution to plaintiffs might have been underestimated.

In addition, the class-action cases should have named more defendants, including officers and individuals at DeWaay companies who would have been responsible for conducting due diligence on private placements in investments promoted by DeWaay and his brokers.

The documents include a deposition in which DeWaay said he had little supervision over his companies’ due dilegence practices, but believed they held to rules advanced by the Financial Industry Regulatory Authority Inc. (FINRA), a private group that oversees broker dealers.

The recent filings also point out how dire the financial operations have been at the Clive financial services campus DeWaay built, with a loan from a 401(k) account used at one point to cover operating expenses.

A hearing on the settlement and other issues in the class-action cases is scheduled for Jan. 30.

Read more:http://www.businessrecord.com/main.asp?SectionID=33&SubSectionID=96&ArticleID=19754&TM=43280.3#ixzz2HyDZ949g