Investors should review the recent regulatory fines on Raymond James & Associates’ record.
Elder Abuse Allegations
Raymond James & Associates allegedly failed to protect one of its clients from financial elder abuse. According to an SEC Complaint, a Raymond James representative misappropriated $901,500 from a 98-year-old man’s individual retirement account, with $148,000 misappropriated under Raymond James’ supervision. Then, the representative allegedly misappropriated $22,400 from another elderly customer by forging a wire transfer authorization letter.
The SEC claims that Raymond James supervisors should have caught this conversion of customer funds, noting that a supervisor had already noticed “extremely high” amounts of money being transferred by wire from an individual retirement account. The broker was also allegedly paying the wire expenses despite the fact that he did not earn significant commissions from the account, something the SEC indicates should have roused the supervisor’s suspicions.
Raymond James was censured by the SEC and ordered to pay a civil money penalty of $500,000.
Unit Investment Trusts (UITs) and an Alleged Failure to Supervise
On September 28, 2022, FINRA censured Raymond James & Associates and fined the firm $50,000 following allegations they failed to supervise brokers who abused commissions by recommending “short holds” of Unit Investment Trusts (UITs). UITs are meant to be held to their maturity dates. Selling them to re-invest in similar UITs can result in investors paying unnecessary sales charges, resulting in losses.
529 Plan Share Class Allegations
According to an Acceptance, Waiver, and Consent agreement, Raymond James & Associates consented to the findings that it had failed to enforce Written Supervisory Procedures (WSPs) regarding 529 plan share-class recommendations. Allegedly, Raymond James representatives failed to assess the investors’ ages–as well as when they planned to make withdrawals–when recommending share classes.
As a result of the AWC, Raymond James & Associates agreed to pay restitution of $4,489,553.70 to customers who incurred excessive fees.
Raymond James & Associates Broker Blogs
The following brokers are either registered with Raymond James or have registered with Raymond James in the past 10 years. If you have lost money with any of the following brokers, consider speaking with a securities attorney.