Ex-Raymond James Broker Named In $500K UIT Investment Fraud Claim
Our stockbroker fraud lawyers are investigating claims involving Ameriprise (AMP) and former Raymond James broker, E. Kyle Davis. Contact Shepherd Smith Edwards and Kantas (SSEK Law Firm) today if you believe that you may have fallen victim to investment fraud.
Davis, who has worked over two decades in the securities industry, has been named in six disclosures including four customer disputes. Still pending is one customer claim seeking $500K in damages involving a unit investment trust (UIT) while Davis was a Raymond James Financial stockbroker. The customer is making a number of allegations, including the following:
- Breach of fiduciary duty
- Negligent supervision
- Breach of contract
- Broker fraud
In 2007, the state of Illinois sanctioned Davis with an $1500 fine over other customer complaints. Also that year, NASD suspended and ordered him to pay $7500 following allegations that he made transactions in one customer’s account without their knowledge.
E. Kyle Davis has been an Ameriprise broker since last year. He was a Raymond James Financial broker from 2013 to 2019. Previous to that, he worked as a registered broker for Morgan Keegan, Morgan Stanley and VTR Capital.
Unit Investment Trusts (UITs): What Are They?
A Unit Investment Trust (UIT) is an investment company that buys or holds a group of securities, such as stocks or bonds, and makes them available to investors as redeemable units. Similar to mutual funds, these kinds of investments are bought and sold directly from the company that issues them. However, they have a stated expiration date and aren’t actively traded.
UITs are not for every investor. Like with every investment, a broker or investment advisor must make sure that they are appropriate for a customer’s goals, portfolio, and risk tolerance level when recommending them.
Financial representatives also must make sure the customer understands what a unit investment trust is and the risks that he or she will take on. When a failure to do any of this leads to inappropriate recommendations, misrepresentations, or omissions by the stockbroker and an investor ends up losing money, this could be grounds for a UIT fraud claim.
Have You Fallen Victim To Inadequate Supervision?
When a broker commits fraud or is negligent, resulting in financial losses for a customer, the broker-dealer could be held liable for failing to properly supervise the registered representative. Brokerage firms are also supposed to properly train their stockbrokers and provide/enforce written systems and procedures to ensure that everyone is in compliance with all rules and laws.
Over the years, our failure to supervise attorneys at SSEK Law Firm has successfully pursued these types of claims against the brokers and their firms who’ve cost our clients money. We work with retail investors, senior investors, inexperienced investors, high-net-worth individual investors, sophisticated investors, and institutional clients. Contact us today for a free, no-obligation case consultation.