FINRA Bars Registered Rep For $15M In Unauthorized Trades
The Financial Industry Regulatory Authority has barred Craig David Dima, a former registered representative with KC Ward Financial, for making about $15M in unsuitable and unauthorized trades in the account of a 73-year-old retiree. According to the self-regulatory organization, there were 11 times when Dima sold nearly all of the customer’s stock in Colgate-Palmolive that she’d accrued from working with the company for nearly thirty years and he did that without permission.
After the elderly client told Dima not to sell the stock, he proceeded to sell them anyways. When the customer confronted Dima, he purportedly misrepresented that a computer or technical mistake had caused the sale. Meantime, the client was “deprived” of the “substantial dividends” from the Colgate shares she used to own. Dima charged the customer over $375K in fees, mark-downs, and mark-ups.
By settling, Dima is not denying or admitting to FINRA’s charges.
Raymond James Must Pay $762K in Penny Stock Arbitration Case
FINRA has ordered a Raymond James & Associates Inc. (RJF) to pay $762K over penny stocks that a Morgan Keegan financial adviser had purchased for clients between ’07 and ’10. More than 20 claimants had filed their case against Raymond James & Associates in 2014, which is Raymond James Financial Inc.’s broker-dealer arm. Raymond James Financial acquired Morgan Keegan in 2012.
According to the claimants, who were mostly retirees, the ex-adviser, who is not named in this arbitration complaint, misappropriated their retirement money, involving them in unsuitable investments such as penny stocks and variable annuities. This cost them money.
Also, the claimants accused Morgan Keegan branch manager Logan Burch Phillips of directing or approving the former registered representative’s “misdeeds,” as well as that he “failed” in the protection of their assets.
Of the investors who brought the case, eight settled with the broker-dealer, 12 will receive the FINRA arbitration award, and two of the investors saw their claims denied. Of the $762K award, $327K is compensatory damages, $200K is punitive damages, $211K is legal fees and $24K is costs.
Stifel Ordered to Pay Back Older Couple Over High Risk Investments
A FINRA arbitrator has awarded June and Perry Burns over $100K after a Stifel adviser invested their savings in high-risk investments without permission. According to the arbitration claim, Kyle Ratcliff, a Stifel branch manager, directed the couple’s retirement funds into Puerto Rican bonds and oil and gas investments.
The Burns are in their eighties. They claim that Ratcliff caused them to lose a “substantial” chunk of their life savings. They accused Stifel of breach of fiduciary duty, negligence, unauthorized trading, unsuitable investments, and other violations.
The award is $79,709, which is a full refund for the money they lost, plus interest and fees.
Raymond James loses $762,000 penny stock arbitration claim, Investment News