Alabama Retiree Lost Retirement Savings To Broker Fraud and Negligence
An investor in Alabama has filed a Financial Industry Regulatory Authority (FINRA) arbitration complaint against Kestra Investment Services, Inc. for retirement losses that she suffered while working with the now-former broker, James Daughtry.
The firm fired Daughtry earlier this year around the same time that FINRA barred him indefinitely after he refused to testify in the self-regulatory (SRO)’s probe into allegations that he engaged in potentially fraudulent and unauthorized transactions in customers’ accounts.
Shepherd Smith Edwards and Kantas (SSEK Law Firm) is representing this investor. We are also continuing to investigate claims by other former customers of James Daughtry who may have suffered significant financial losses.
Contact SSEK Law Firm today and ask to speak with one of our experienced skilled retirement losses lawyers. We represent retirees, including senior investors and others, throughout the US.
Investor Lost Her Life Savings After Unauthorized Transactions, Selling Away
The claimant is a semi-retiree and an inexperienced investor who worked hard her whole life to save for retirement. She entrusted Daughtry to manage her individual retirement account (IRA) and keep her money safe.
However, instead of rolling the retirement account over to Kestra Investment Services, her life savings ended up at Graysail, a now defunct IRA that was housed at an administrative firm known as Equity Trust.
James Daughtry then forged documents that caused this investor to lend nearly all of her assets to an entity called Small World Capital belonging to a person named Mr. Smalls. Meanwhile, this investor knew nothing about this investment or the rollover. Now, her money is gone.
Unfortunately, it is not uncommon for financial advisors to direct clients’ assets away into projects that they, their family, or friends operate.
Kestra Investment Services Failed To Properly Supervise Broker
All of this happened during James Daughtry’s time as a Kestra broker, even if marketing materials referred to his office as The Daughtry Group.
This means that it was Kestra Investment Services’ duty to properly supervise him and his activities, ensuring the suitability of investments and trading activities, preventing misappropriation, and checking for unapproved outside business activities while protecting all of its customers from fraud and negligence.
Yet because Daughtry sold away a product that Kestra had not approved, violating the firm’s and FINRA’s rules, this retiree investor lost the bulk of her retirement savings.
Now, with her FINRA arbitration claim, she is alleging the following:
- Breach of duties, warranties, and agreements
- Failure to supervise
- Stockbroker Fraud
- Unauthorized transactions
- Brokerage Firm Negligence
- Violation of unfair trade practices and consumer protection laws
- Abuse, negligent, and exploitation of an elderly person
- Unjust enrichment
With 20 years in the industry, James Daughtry also was previously a registered broker with Ameriprise Financial (AMP), Securities America, Sterne Agee Financial Services, Wachovia Securities, Southtrust Securities, and Liberty Securities.
Brokerage Firm Negligence
Our broker fraud lawyers at SSEK Law Firm are offering a free, no-obligation case consultation to any former clients of Kestra broker, James Daughtry, who’ve suffered significant losses as a result of stockbroker fraud and brokerage firm misconduct. Contact us online today or call us at (800) 259-9010.