Tr?id=566623520170033&ev=PageView&noscript=1

SEC Fines Raymond James $500,000 Over Supervisory Failures

Posted on October 11th, 2022 at 2:04 PM
SEC Fines Raymond James $500,000 Over Supervisory Failures

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission (SEC) has imposed a $500,000 fine on Raymond James over its alleged supervisory failures related to a former Tennessee-based advisor.

According to the SEC, Raymond James’s compliance department failed to adequately respond to a branch manager’s concerns about withdrawals in an elderly client’s account. The department’s failure to act enabled an advisor in Cool Springs, Tennessee, to misappropriate $901,500 from a 98-year old’s retirement account between 2015 and 2019, according to a settlement. The branch manager was not named by the SEC, and the manager attempted to escalate concerns about the withdrawals in June 2018 after taking over the Cool Springs office by referring the case to Raymond James’ Senior and At-Risk Clients group.

While Raymond James created the case team in 2017, the group was not typically tasked with flagging internal threats and subsequently failed to contact the clients directly or initiate an investigation. According to the SEC, the compliance department deemed the investigation to be complete and merely put financial advisor Frederick Stow on a performance improvement plan. In 2019, Stow was able to steal an additional $22,400 from a second elderly client, according to the SEC. Raymond James terminated Stow in May 2019 for “misappropriating funds from a client’s account”, according to BrokerCheck. Stow subsequently pled guilty to aggravated identity theft and securities fraud in federal court in 2020, which resulted in a 60-month prison sentence.

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

Tags: eccleston, eccleston law, advisors, law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I am so glad I found you! Wow! I appreciate your help, concern and guidance.

RB

LATEST NEWS AND ARTICLES

1785858278 Law
August 4, 2026
SEC Fines Former LPL Broker $125,000 for Undisclosed Conflicts in Private Securities Offerings

The Securities and Exchange Commission (SEC) has censured a former LPL Financial broker and imposed a $125,000 civil penalty after finding that he failed to disclose conflicts of interest related to private real estate securities offerings that generated nearly $1.5 million in compensation, as reported by AdvisorHub.

1785772777 Law
August 3, 2026
FINRA Launches Review of High-Risk Structured Notes Sales and Supervision

The Financial Industry Regulatory Authority (FINRA) has launched a regulatory sweep examining the sale of high-risk structured products, with particular attention on non-principal protected "worst-of" structured notes, according to AdvisorHub.

1785531573 Law
July 31, 2026
Former Alabama Financial Advisor Barred After Selling His Practice

The U.S.