SSEK Law Firm Represented Client of Fired J.P. Morgan Securities Broker, Ed Turley, and Wins $4 Million FINRA Arbitration Award
A Financial Industry Regulatory Authority (FINRA) arbitration panel in Houston, Texas has awarded a client of Shepherd, Smith, Edwards & Kantas (SSEK Law Firm at investorlawyers.com) $4 million in compensatory damages over losses she sustained while working with ex-J.P. Morgan Securities stockbroker, Edward Turley.
Not only did this ex-San Francisco-based financial advisor unsuitably invest her in products that were too risky, but he and the firm also used a complex strategy that involved borrowing on margin without her knowledge. Tragically, the client lost millions of dollars while Ed Turley and J.P. Morgan profited significantly from her account.
J.P. Morgan has since fired Turley in the wake of numerous broker misconduct allegations and a FINRA investigation. J.P. Morgan continues to be named in other securities claims by Turley’s former customers who are collectively requesting more than $55 million in damages.
SSEK Law Firm already represents a number of those other wronged investors that have filed complaints against JP Morgan for Turley’s misconduct that resulted in massive losses for many clients in March 2020.
Shepherd Smith Edwards and Kantas and co-counsel Sonn Law Group represented this investor in her 7-figure FINRA arbitration case that resulted in a $4 million award. We are also continuing to work with and investigate other claims of losses by investors who had Turley as their J.P. Morgan registered representative.
Call our experienced FINRA arbitration lawyers at SSEK Law Firm today at (800) 259-9010 so that we can help you explore your legal options.
Ed Turley Leveraged Inexperienced Investor’s Account, Made Risky Trades to Charge Large Fees
The claimant in this recent award entrusted J.P. Morgan to take care of funds that were supposed to provide for her family. Instead, the brokerage firm and Turley placed her money in a very risky, speculative investment strategy that imploded in March 2020.
This strategy involved the trading of high-risk equities and junk bonds, as well as the use of significant leverage in foreign currencies to make the trades. The type of securities Turley and J.P. Morgan purchased were the ones that paid them the highest fees, rather than the ones in the best interests of the client.
This resulted in an investment account largely concentrated in preferred stocks, Master Limited Partnerships (“MLPs”), and below investment grade (“junk”) bonds. Ultimately, this strategy was completely unsuitable for this inexperienced investor, her financial goals, and her risk tolerance level. Due to this, the claimant lost millions of dollars.
This investor contends that at no time did Edward Turley discuss her financial goals with her or find out about her investing experience. Other investments that the broker and broker-dealer purchased for this claimant included the AMLP exchange-traded fund (“ETF”), a Capital One preferred stock, and the alternative asset, Granite Point Mortgage Trust. Meanwhile, J.P. Morgan Securities charged this customer hundreds of thousands of dollars in commissions, fees, and margin interest.
In her FINRA arbitration, the broker-dealer made a number of allegations against the firm, including:
- Breach of fiduciary duty
- Gross negligence
- Misrepresentations and omissions
- Unjust enrichment
- Failure to supervise
- Vicarious and control person liability
Turley and J.P. Morgan Traded Over $80 Million Without Authorization
With nearly three decades in the industry, Ed Turley was at one point managing over $1.6 billion in client assets. Turley was a top-earning J.P. Morgan Securities broker and executive vice president. Yet, Turley and J.P. Morgan made over $80 million in securities transactions without this customer’s permission. This was absolutely a violation of securities laws and broker misconduct.
SSEK Law Firm would like to offer anyone who invested with Turley and J.P. Morgan a free case consultation. Our FINRA arbitration lawyers have spent more than 30 years going after large Wall Street firms and their financial advisors on behalf of investors seeking financial recovery. Call us at (800) 259-9010 today or contact us online.