Did you lose money investing with James Lyons (CRD# 1020397)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with James Lyons. If you suffered losses investing with James Lyons, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
As of May 12, 2020, James Lyons’s FINRA BrokerCheck Report contains the following:
BARRED: FINRA has barred this individual from acting as a broker or otherwise associating with a broker-dealer firm.
8 Customer Dispute(s)
1 Regulatory Event(s)
1 Employment Separation After Allegations
UPDATED: According to records publicly released by FINRA, a panel of arbitrators has awarded $3.2 million a group of 27 Raymond James & Associates customers who alleged unauthorized trading in oil and gas ventures by its former financial advisor James Lyons. James Lyons has been barred by FINRA from acting as a broker or otherwise associating with a broker-dealer firm.
According to the award, between February 2013 and November 2017, James Lyons allegedly invested the Claimants in oil and gas Master Limited Partnerships (“MLPs”) and Unit Investment Trusts, including, but not limited to, Linn Energy, Memorial Production Partners, Calumet Partners, and Cushing MLP Funds, without their approval. The Claimants portfolios were allegedly over concentrated with approximately 80% invested in oil and gas MLPs, and when oil prices took a dive in 2014, so did the value of the portfolios.
The arbitration panel reportedly awarded approximately $3.2 million, plus interest, to the 27 customers (primarily in compensatory damages). The Claimants reportedly had asked for $8.9 million.
Current and Previous Registrations
02/13/2013 – 05/22/2017 RAYMOND JAMES & ASSOCIATES, INC. (CRD#:705) SHREVEPORT, LA
08/02/1993 – 02/13/2013 MORGAN KEEGAN & COMPANY, INC. (CRD#:4161) (Acquired by Raymond James & Associates, Inc. (CRD#:705) SHREVEPORT, LA
05/17/1983 – 08/02/1993 CAPITOL SECURITIES GROUP, INC. (CRD#:8094)
Due Diligence Requirement
FINRA requires broker’s to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Brokers and the brokerage firms they work for that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability.
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This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
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