Raymond James is a financial services holding company with three wholly-owned broker-dealer subsidiaries in the United States: Raymond James Financial Services (RJFS), Raymond James & Associates, and Raymond James Limited.
If an advisor acts negligently or unlawfully against a client’s interests, and the client suffers financial losses as a result, the firm may be held responsible for those losses. An investment fraud lawyer will review your complaints against Raymond James Financial Services, Inc., and help recover your losses.
Since 1999, we’ve successfully recovered over $350 million for our clients. If you’ve experienced investment losses exceeding $100,000 due to the actions of a financial advisor or investment firm, we can help. Contact us today to discuss your brokerage firm investment loss claim.
More About Raymond James
Raymond James, founded in 1962 by Bob James as Robert A. James Investments, has evolved into a leading financial services firm headquartered in St. Petersburg, Florida. In 1964, Edward Raymond sold Raymond and Associates to Bob James, who agreed to rename the firm Raymond James & Associates.
In 1968, Investment Management & Research, Inc. (IM&R) was established, later becoming part of Raymond James Financial Services. In 1980, Robert Thomas Securities was formed as an independent broker-dealer, and in 1999, IM&R and Robert Thomas Securities merged to create RJFS.
If you suspect that your advisor’s misconduct caused your financial losses, consult an investment fraud lawyer. Your attorney will review the details of your case, gather necessary evidence, and determine how to recover your losses.
More About Raymond James Financial Services, Inc.
Raymond James Financial Services, the broker–dealer division, is central to the company’s operations. It provides investment and financial advisory services through a network of over 6,000 financial advisors.
As part of Raymond James Financial, Inc., the firm now boasts approximately 8,800 financial advisors globally and manages around $1.57 trillion in client assets.
Licensed in all U.S. states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, Raymond James continues to be a key player in wealth management and capital markets.
Raymond James | Morgan Keegan
Morgan Keegan & Co. was founded in 1969 in Memphis, Tennessee, and is a full-service investment firm offering services such as securities brokerage, investment banking, and wealth and asset management. In 2001, Morgan Keegan & Co. was purchased by Regions Financial and operated as its investment and securities brokerage trust and asset management division.
In January 2012, Regions sold Morgan Keegan to Raymond James for $930 million. Morgan Keegan is now integrated with Raymond James, creating one of the largest independent full-service wealth management and capital market firms in the nation that is not based on Wall Street.
Claims of Financial Misconduct and Fraud at Raymond James Financial Services
RJFS is licensed by the Financial Industry Regulatory Authority (FINRA) and, as such, is legally obligated to ensure its advisors are acting lawfully in the interest of their investors. If a client suffers losses as a result of negligent behavior or misconduct from an advisor, then the firm may be held legally responsible for repaying the damages.
RJFS and advisors backed by RJFS have a long history of misconduct. According to FINRA’s BrokerCheck report, the firm has 203 disclosures, of which 127 were regulatory events and 76 were arbitrations.
Unsuitable Investment Recommendations
In 2005, NASD (now part of FINRA) fined Raymond James $750,000 for fee–based account violations. In addition to the fines, Raymond James also had to pay restitution to some of its investors.
The Vice Chairman of NASD issued a statement saying that Raymond James was fined because they recommended these fee-based accounts to many customers for whom this type of account was not appropriate.
Supervisory Negligence of Branch Managers
In 2007, NASD fined Raymond James $2.7 million for negligent supervision of branch managers. According to this regulatory action, Raymond James failed to adequately supervise its branch managers and, consequently, securities sales activities.
The failures took place at branches throughout the United States. At least 1,000 branch managers were under-supervised. The NASD also filed a related action against one particular branch manager, Donna Vogt, for unsuitability involving elderly investors.
Overcharging Clients Due to Inadequate Supervision
In 2011, FINRA ordered Raymond James to pay $1.69 million in restitution to its investors after the firm charged unfair commissions.
According to this FINRA action, more than 15,500 investors were forced to pay unfair commissions on securities transactions from 2006 to 2010. The overcharging was a direct result of inadequate supervision.
Failure to Supervise
In October 2022, FINRA initiated a claim against RJFS, finding that the firm failed to have a qualified and registered principal authorize changes to the account name or designation on more than 7,500 equity orders.
The unapproved changes resulted in customer losses for one customer, approximately $100,000. RJFS was censured, fined $800,000, and ordered to pay $48,574.79, plus interest, in restitution to its customers.
Multiple Charges of Negligence and Misconduct
Raymond James Financial Services has faced numerous allegations and legal actions over the years for failing to uphold its obligations to clients.
In one notable case from August 2022, a FINRA arbitration panel ordered RJFS to pay $67,917.01 in damages after determining that the firm had engaged in violations of ethical and regulatory standards.
The FINRA arbitration case included allegations of the following:
- Breach of fiduciary duty
- Churning
- Fraud
- Misrepresentation
- Omission of facts
- Suitability
- Unauthorized trading
- Violation of Blue Sky laws
- Breach of contract
- Failure to supervise
- Margin calls
- Negligence
These allegations claim failures in the firm’s operations, particularly in supervising financial advisors and ensuring compliance with securities laws.
For affected clients, such misconduct, if proven, can result in significant financial losses, stress, and uncertainty about their financial futures.
Misrepresentation
A group of nearly four dozen investors, including retirees and schoolteachers, is suing Raymond James Financial for $5 million, claiming the firm failed to disclose the real reason for terminating advisor Mario Payne in 2019.
The lawsuit, filed in Florida, claims that Raymond James falsely stated Payne was dismissed for performance issues instead of acknowledging his history of misrepresenting risky investments as safe for conservative clients. This allowed Payne to open his own advisory firm, Toams Financial, and continue targeting unsuspecting investors.
The plaintiffs argue that Raymond James violated Florida securities laws and FINRA rules by incorrectly reporting the reason for Payne’s termination on regulatory forms, which prevented them from obtaining important information about his history.
They also claim that Payne invested their money in high-risk, unsuitable options that he falsely portrayed as safe, resulting in substantial financial losses.
Can I File a Lawsuit Against Raymond James Financial Services?
If your financial losses are the result of negligence by a Raymond James Financial advisor, you might be considering legal action against the firm. However, pursuing a lawsuit against the company may not be a viable option.
Most clients sign agreements when opening accounts that include arbitration clauses, which waive the right to sue in court. These agreements generally require that any disputes be resolved through FINRA arbitration instead.
An Investment Fraud Lawyer Can Help With Your Claim
A securities brokerage firm licensed by FINRA, Raymond James has a legal duty to supervise its advisors and their recommendations to clients to ensure compliance with and prevent violations of the security industry’s rules.
If you were a victim of fraud or other misconduct by a Raymond James Financial Services, Inc. advisor, you may have the right to recover your losses.
At Meyer Wilson, our attorneys confidently represent the largest investment firms, such as Raymond James Financial Services, and our track record affirms our success.
