Articles Tagged with unauthorized trading

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.

SSEK Investigates Eddie Lyons Of Raymond James & Associates

Shepherd, Smith, Edwards & Kantas (“SSEK”), a law firm specializing in representing wronged investors, is looking into allegations against Eddie Lyons as noted by FINRA.  Lyons was a financial advisor registered with Raymond James & Associates, Inc. He was terminated, in part, due to allegations by his clients that he engaged in unauthorized trading of accounts.

FINRA then initiated an investigation in November 2017.  The inquiry was based on several complaints from customers.  The allegations ran the gambit of bad acts. These include, but may not be limited to, unauthorized trading. 

FINRA Arbitration Panel Awards Allegis Investment Advisors Client $404,482

A Financial Industry Regulatory Authority arbitration panel has awarded Mark Watson $404,482 in his unauthorized trading case against Allegis Investment Services, Allegis Investment Advisors, and ex-broker Brandon Curt Stimpson. Watson is accusing Stimpson of placing his life savings in investments that were too risky and complex and of making unauthorized trades involving index put options connected to the Russell 2000 Index even though he had told the broker that he only wanted up to 25% of his portfolio involved in these. Instead, Watson alleges, Stimpson invested way more of his money in the index put options.

In his securities arbitration case, Watson also alleged breach of fiduciary duty. Now, a FINRA panel has awarded him nearly $275K in compensatory damages, nearly $54K in interest, and other costs.

Stimpson was fired by Allegis last year for not abiding by the firm’s ethics code and policies. According to his BrokerCheck records, he has been named in eight other customer disputes.

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