Investors Allege Stephen Hollingsworth Executed Excessive and Unauthorized Trades

Stephen Hollingsworth (CRD #: 1328648), a broker registered with Raymond James Financial Services, allegedly executed unauthorized and unsuitable trades, according to his BrokerCheck record, accessed on January 5, 2023. If you have questions about his alleged conduct as a broker, read on.

Investor Dispute

On October 18, 2022, several investors filed a dispute alleging that Stephen Hollingsworth executed unauthorized trades, executed an unsuitably high number of trades, made unsuitable recommendations to trade on margin, and purchased unsuitable investments in the clients’ accounts.

The clients allege that this misconduct occurred between November 7, 2010, and September 2, 2021. They seek $762,908 in damages in this pending dispute.

FINRA Rule 3260

FINRA Rule 3260 forbids brokers from executing discretionary trades outside of discretionary accounts which have been pre-approved for discretionary trading by the firm and the client.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles, which describe characteristics such as their risk tolerance, age, and financial goals.

Brokers must also ensure their trading activity is quantitatively suitable, meaning that the total number of trades executed is suitable given the client’s profile.

Investors who believe their losses are the result of unsuitable investment recommendations may be able to recover their funds by pursuing FINRA arbitration.

Background Information

Stephen Hollingsworth has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Stephen Hollingsworth is a registered broker in 19 states and a registered investment adviser in Connecticut, Massachusetts, and Texas.

He has also worked for the following firms:

• Wells Fargo Advisors (CRD#:19616)
• UBS Financial Services (CRD#:8174)
• Smith Barney Shearson (CRD#:7059)
• Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)

Kurta Law Can Help

If you worked with Stephen Hollingsworth and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.