The Shepherd Smith Edwards and Kantas FINRA Arbitration Law Firm Is Investigating Former Stifel Broker Jonathan Webster
If you sustained serious losses from costly brokerage trades made by ex-Stifel, Nicolaus, & Co. financial advisor Jonathan Mark Webster, contact Shepherd Smith Edwards and Kantas (investorlawyers.com). Webster, a longtime broker of nearly 39 years who was fired by the broker-dealer in 2024, was just suspended by the Financial Industry Regulatory Authority (FINRA) for seven months. He allegedly made trades for 19 clients, including at least 13 seniors, using commission-based brokerage accounts instead of advisory accounts that were fee-based and less costly.
The self-regulatory organization (SRO) contends that from November to December 2023, Webster made this unsuitable recommendation. He allegedly effected a short-term strategy that involved buying stocks in the commission-based accounts. This was a 10-stock approach based on the “January effect,” in which he would buy stocks in December and sell them in January so as to make money from the rise in price he predicted was going to happen. FINRA said that Webster bought the same exact 10 stocks for each of the customers in their brokerage accounts.
As a result, the customers paid more than $121,000 in commissions they wouldn’t have paid if the trades were made in advisory accounts. Seeing as there were no reasonable grounds for believing that the trades using that short-term strategy should be made in the brokerage accounts, instead of the advisory accounts, FINRA found that Webster’s actions violated the US Securities and Exchange Commission’s Regulation Best Interest rule. (SEC Reg BI).
Jonathan Webster accepts FINRA’s findings but without admitting to or denying the allegations.
In January 2024, Stifel fired Webster over the alleged broker misconduct, paid back all commissions to the customers, and rebilled the trades to their advisory accounts.
What Should I Do If I Suffered Losses From Costly Trades Made by Ex-Stifel Broker Jonathan Webster or Another Registered Representative At The Firm?
Even if Stifel paid you back the fees you were charged, you still may have grounds for filing a FINRA arbitration claim against the brokerage firm for your losses. Brokerage firms have a duty to properly supervise all of their financial advisors so that broker negligence or misconduct does not happen. There may have been other costs to you beyond the money you were paid back, including lost opportunity, interest, and more.
Due diligence failures, breach of fiduciary duty, breach of contract, a failure to supervise, excessive commissions, unauthorized trading, Regulation Best Interest violations, unsuitability, negligence, and gross negligence can be other legal grounds for suing a broker-dealer.
The Shepherd Smith Edwards and Kantas FINRA Arbitration Law Firm Represents Investors Against Brokerage Firms, Including Stifel
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