FINRA Orders Raymond James to Pay $1.1 Million For Overcharges and Supervisory Failures

Posted on November 2nd, 2022 at 3:11 PM
FINRA Orders Raymond James to Pay $1.1 Million For Overcharges and Supervisory Failures

From the Desk of Jim Eccleston at Eccleston Law.

The Financial Industry Regulatory Authority (FINRA) has ordered Raymond James to pay at least $1.1 million over supervisory failures that resulted in excessive commissions charged to clients as well as unauthorized changes to account designations on trades.

According to FINRA, a Raymond James father-and-son team based in Mercer Island, Washington, orchestrated a scheme to overcharge seven institutional clients nearly $2.4 million between January 2021 and April 2018. While the commissions charges raised “multiple red flags” over the relevant period, Raymond James failed to reasonably investigate the advisors, according to FINRA. FINRA barred the father-and-son duo from the industry in June 2018 after each of them voluntarily resigned while under investigation one month prior.

Additionally, FINRA alleged that Raymond James failed to employ a qualified supervisor to authorize changes to the account name or designation on at least 7,500 equity orders between January 2012 and February 2020. Raymond James’ failure led one client to lose $100,000 when an advisor altered the designation on certain orders to his own account, according to FINRA.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, finra

Return to Archive

TESTIMONIALS

Previous
Next

If you are being bothered by the Regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

September 26, 2025
SEC and DOJ Target $770 Million Prestige Funds Ponzi Scheme

Federal regulators say thousands of investors may have lost money in what they allege was a massive Ponzi scheme tied to the Prestige Funds and WF Velocity Funds.

September 25, 2025
FINRA Suspends Spartan Capital Broker for Excessive Trading Violations

The Financial Industry Regulatory Authority (FINRA) has suspended Joseph Kelly, a broker at Spartan Capital Securities, for nine months and ordered him to pay a $10,000 fine and $69,830 in restitution.

September 24, 2025
How New CCOs Can Navigate Today's Compliance Challenges

The role of the chief compliance officer (CCO) has never carried more weight or more complexity, according to Wealth Management.