Barred Kestra Stockbroker Accused of Unauthorized Trading

Our broker misconduct lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) are currently speaking with former customers of ex-Kestra Investment Services broker James Blake Daughtry. He was recently barred by the Financial Industry Regulatory Authority (FINRA). The self-regulatory organization (SRO) issued the ban after Daughtry refused to testify during its investigation into allegations that he may have engaged in transactions that were potentially “fraudulent and unauthorized” in a number of customers’ accounts. Also, in the wake of FINRA’s order, Kestra fired him this month.

Daughtry consented to FINRA’s bar but without denying or admitting to the SRO’s findings. His BrokerCheck record notes that he worked 20 years in the industry. He is both an ex-broker and a former investment adviser. Aside from five years with Kestra, Daughtry has previously been a registered stockbroker with Ameriprise Financial Services (AMP), Securities America, Stern Agee Financial Services, Wachovia Securities, Southtrust Securities, and Liberty Securities.

Watch Out for Brokers Looking to Make High Commissions During COVID-19

With the market crashing in the wake of the Coronavirus (COVID-19), many investors are suffering from massive losses in their portfolio and are looking to their brokers for investment advice.

Unfortunately, not all stockbrokers work with their customers’ best interests at heart, breaching their fiduciary duty in the process. There are also unscrupulous registered representatives who may even seek to take advantage of these hard times and try to persuade investors to buy into risky investments that charge high commissions. Such fraudulent and negligent behavior will lead to even more investment losses and ultimately, acts of stockbroker misconduct. 

Preferred Apartment Communities Investors Pay High Commissions

Throughout the United States, our non-traded real estate investment trust (REIT) attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm) are speaking to investors whose registered brokers or investment advisors persuaded them to invest in Preferred Apartment Communities, which is a non-traded REIT. 

This investment has paid stockbrokers up to 7% commission and comes with additional fees, including around 4-5% in brokerage firm fees and offering costs. 

Investment Losses During Recent Market Crisis May Be Recoverable 

Investors throughout the United States are grappling with financial investment losses as markets continue to remain volatile in the wake of Coronavirus (COVID-19). The recent oil price drops, the rise in unemployment as businesses are forced to shutter and lay off employees, and a flailing economy has done nothing to assuage growing concerns.

Already, Shepherd Smith Edwards and Kantas (SSEK Law Firm) has spoken to a number of these investors to see how we might help. 

Investment Losses During COVID-19 Pandemic May Have Been Caused By Fraud Or Negligence

According to experts, George Friedman and Rick Ryder, fears about the novel coronavirus (COVID-19) and the resulting market turbulence will lead to a rise in investor fraud claims and FINRA arbitration cases. Friedman is the Securities Arbitration Alert editor-in-chief and Ryder is the Securities Arbitration Commentator president and founder. 

In a recent blog post, What’s Past is Prologue, they spoke about how customers will wonder whether their stockbrokers and investment advisors properly handled their accounts, which are now being negatively affected by the ongoing market volatility. 

Non-Traditional Investment Losses

If you were an investor who sustained losses while working with Mark Alan Cline, contact Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) today. Our brokerage firm misconduct lawyers work with clients who have suffered financial losses due to the negligent, fraudulent or other wrongful actions of their financial representatives.

Based out of Wildwood, Florida, Cline operates the Cline Financial Group.  According to its website, Cline Financial Group offers what are known as non-traditional investments such as Real Estate Investment Trusts (“REITs”), Delaware Statutory Trusts (“DSTs”) and Non-Traded Preferred Stocks.  Based on Cline’s official record with the Financial Industry Regulatory Authority (“FINRA”), the entity that regulates all brokerage firms and advisors, he is an employee of National Securities Corporation.  The official record is known as the CRD, and according to Cline’s record he has 12 customer complaints.  Interestingly, all of the complaints were filed in December of 2019 and all of these customer disputes allege claims involving suitability of the investments recommended. The customer disputes are all pending and range in controversy from $50,000 to $800,000.

Triad Advisors Sued Over GPB Private Placement Sales

In our latest GPB investor fraud claim against a brokerage firm, Shepherd Smith Edwards and Kantas, (SSEK Law Firm) is seeking up to $500K from Triad Advisors on behalf of a retired Texas couple. The claimants, who are in their seventies, entrusted a significant chunk of their savings to Triad brokers Jack Jones and Mark Robare, whom they are accusing of overconcentrating their money in GPB private placements and other unsuitable investments. The couple contend that they lost half a million dollars as a result.

GPB Capital Holdings, an alternative asset firm that issued the private placements, is accused of operating a $1.5B Ponzi scam. Now, the 60 brokerage firms whose registered financial representatives sold these investments are finding themselves the subject of broker fraud claims from investors seeking to recover their money.

The Drop In Oil Prices Could Lead To Losses For Midstream MLP Investors 

With oil and energy stocks continuing to fall – Saudi Arabia’s threat to globally distribute millions of barrels of crude oil in order to win the oil price war over the United States and Russia has only exacerbated these declines. Investors may be wondering – what does this mean for Midstream Master Limited Partnerships (MLPs)? 

At Shepherd Smith Edwards and Kantas (SSEK Law Firm), our MLP investment fraud lawyers work with investors that have sustained significant losses caused by fraud or negligence. 

Wells Fargo Stockbroker Accused Of Overconcentration & Unsuitable Investments 

Wells Fargo Clearing Services broker, Jeffrey Eiler, has been the subject of 12 customer investment loss disputes, most of which were settled and a few that were denied. If you are an investor who lost money while Eiler was your registered representative, our stockbroker fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm) want to offer you a free case assessment. 

The customer disputes against Eiler go back more than twenty years. According to his BrokerCheck record, most of the settlements were paid by the firm where he was a registered representative. 

Coronavirus (COVID-19) Update: YES Strategy Is Vulnerable To Losses Now Markets Are Rough

The World Health Organization (WHO) has just declared the coronavirus a pandemic, with the United States President Donald Trump announcing a travel ban involving more than two dozen nations. As if these health concerns weren’t bad enough, the latest Coronavirus update has also placed the markets in a panic. Dow Jones dropped by thousands of points and the S&P 500 index has also taken a dive. 

While the stock markets do typically rebound after a sharp plunge, we are currently living in uncertain times due to COVID-19. As one Bank of America Merrill Lynch report cited in a Reuters article, the coronavirus is the type of “slow-moving train wreck” in which the market “slowly and progressively” realizes its “magnitude.”

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