J.W. Cole

Kurta Law is investigating claims made against J.W. Cole representatives. J.W. Cole has been the subject of multiple customer complaints and regulatory actions.  In addition, J.W. Cole has a history of alleged misconduct, which is noted on its FINRA BrokerCheck Report.   

Kurta Law wants to hear from investors who have concerns about losses in their investment accounts with J.W. Cole. While some fluctuations are inevitable, investors should investigate any unexpected losses, especially if they are low-risk investors who lost some or all of their principal investment while investing with J.W. Cole. Securities attorneys specialize in this niche area of law, as well as FINRA arbitration – the process that most investors are required to go through to recover losses rather than suing in civil court.

Background Information

J.W. Cole (CRD #: 124583) is a brokerage firm. It is affiliated with an advisory firm called J.W. Advisors. These firms have their main offices in Tampa, Florida. According to the website, J.W. Cole employs over 450 independent representatives in all 50 states.

The firm’s offerings include, but are not limited to:

• Stocks and bonds
• Options
• Mutual Funds
• Variable Annuities

Products like options and variable annuities are often too complex to suit an investor’s needs. If you believe your broker may have recommended an unsuitable investment, contact a securities attorney.

Certain product sponsors may pay JW Cole to participate in the firm’s education and training programs, and cover the costs of due diligence, meetings, and other advisor events. The firm may also receive a small percentage of an investor’s total investment in a product.

Brokerage Account Fees

J.W .Cole discloses its brokerage account fees in its Customer Relationship Summary (Form CRS).

• Per-Transaction Fees: Every time investors buy or sell a stock they pay a transaction fee.
• “Mark-up” and “Mark-down”: Charges that come with bonds. These are part of the price of the bond and may not be obvious, unlike the separate transaction fees that come with stocks. These charges reduce the value of the investment.
• Mutual funds come with fees that reduce the value of the investment over time.
• Certain investments may feature surrender charges or other fees paid upon the sale of the security.
• Investors may also pay fees for account maintenance, wire transfers, and service fees.

Conflicts of Interest

Brokerage firm representatives are required to tell you when they have a conflict of interest.

• Transaction-based fees create an incentive for brokers to encourage you to trade more often and in larger amounts.
• Mutual funds and other products may include “trail commissions,” which are continuing payments paid to the firm. Brokers have an incentive to recommend products that come with trail commissions.
• J.W. Cole works with 200 companies that sponsor certain products. The firm has relationships with these companies to provide training to JW Cole Advisors. You can see a complete list of these companies in the firm’s “Product Relationship” disclosure.

J.W. Cole and Allegations of Securities Rule Violations

J.W. Cole and certain of its representatives have allegations of misconduct on their records. Kurta Law wants investors to review the following regulatory actions.

$50,000 FINRA Fine

On March 29, 2021, JW Cole entered into an Acceptance, Waiver, and Consent Agreement (AWC) in order to settle with the Financial Industry Regulatory Authority (FINRA). AWCs allow firms to consent to the entry of findings without admitting or denying the findings.

According to the AWC, JW Cole brokers recommended risky shares of LJM Preservation & Growth Fund without adequate supervision from the brokerage firm. The fund allegedly used a risky strategy that involved purchasing uncovered options. The firm allegedly did not perform its due diligence and understand the risks associated with this investment before offering it on its platform.

J.W. Cole allegedly used an electronic trade review system that was not suitable for reviewing more complex alternative mutual fund recommendations.

J.W. Cole brokers allegedly recommended $1 million of LJM shares to customers. The AWC states that LJM’s value dropped 80% during a period of extreme volatility in February 2019, leading to the liquidation of the fund.

Failure to Supervise 3110

FINRA Rule 3110 requires that firms establish systems of supervision to maintain their compliance with securities regulations. Their systems of supervision should be able to catch unsuitable recommendations.

Terms of the AWC

J.W. Cole agreed to make a restitution payment of $163,527 to its customers plus interest. The firm also consented to pay a $50,000 fine.

$135,000 Arbitration Award

J.W. Cole also has an arbitration award on its record. Following allegations of violations of securities rules and regulations, including misrepresentation, violations of fiduciary duty, failure to supervise, and negligence, the firm agreed to pay $!35,000 to settle a dispute on November 16, 2023.

The dispute involves annuities and Real Estate Investment Trusts (REITs).

Broker Alleged Misconduct Record

Kurta Law is aware of the following brokers who have registered with JW Cole who have allegations of misconduct on their records. Certain brokers are facing investor disputes alleging millions of dollars in losses.

These are just a few examples – contact a securities attorney if you have concerns regarding your J.W. Cole broker.

• Ron Hoyle: https://www.kurtalawfirm.com/blog/ron-hoyle/
• Terry Armstrong: https://www.kurtalawfirm.com/blog/terry-armstrong/
• Brian Hamm: https://www.kurtalawfirm.com/blog/brian-hamm/
• Jacob Cazier: https://www.kurtalawfirm.com/blog/jacob-cazier/
• Richard Lamore: https://www.kurtalawfirm.com/blog/richard-lamore/
• Jason Kimber: https://www.kurtalawfirm.com/blog/jason-kimber/

Do I Need a Securities Attorney?

If you have questions, call our office for a free case evaluation. Our securities attorneys are happy to discuss the details of your case and will let you know if there is a claim worth pursuing. Kurta Law investment lawyers work on contingency, meaning they do not collect any fees unless they win your case. Call (877) 600-0098, email info@kurtalawfirm.com, or get in touch via our live chat.