In May 2011, a stockbroker and brokerage firm negligence in the handling of a customer account. The FINRA arbitrators found that a Raymond James broker improperly convinced the couple to invest approximately $3.5 million of their savings into unsuitable investments, specifically variable life insurance and variable annuities. The couple’s retirement savings had been invested in more appropriate bond funds.

The arbitrators found that Raymond James failed to properly supervise its broker, whose misconduct included exchanging one annuity in the couple’s portfolio for a different one, resulting in substantial penalties. Such a transaction, called switching, generally makes no financial sense for the investor, and only serves to put commissions and fees in the pockets of the broker and brokerage firm. Switching annuities in this manner is similar to churning a stock account.

EN   ES   PT     

Miami Office
Grand Bay Plaza
2665 S. Bayshore Drive
Penthouse 2B
Miami, FL 33133
Telephone: 786.628.8236

Los Angeles Office
Available by Appointment
2029 Century Park East
Century Plaza Tower
Suite 400N
Los Angeles, CA 90067
Telephone: 424.544.7930

New York City Office
Available by Appointment
14 Wall St, 20th Floor
New York, NY 10005
Telephone: 917.382.5217

West Palm Beach Office
Northbridge Centre
515 N. Flagler Drive, Suite P-300
West Palm Beach, FL 33401
Telephone: 561.475.2887

Detroit Office
41000 Woodward Avenue,
Suite 350 East
Bloomfield Hills, Mi 48304
Telephone: 248.368.0182