The Investor's Rights Law Blog
Paul Hack, a broker employed by Raymond James & Associates, Inc. (Raymond James), submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he accepted instructions from a customer’s husband to withdraw account funds of at least $200,000 without that customer’s written authorization and sanctions described below.
Paul Hack, of Bloomfield Hills, Michigan, was the registered representative for the accounts held by the customer involved in this matter. FINRA found that between January 2008 and December 2011, the customer’s spouse, who allegedly had no authority over the accounts, requested that Mr. Hack or his assistants withdraw funds from the customer’s accounts. The customer’s spouse allegedly requested these funds withdrawals on at least 20 occasions. Notwithstanding the policies of Raymond James, which required a written Letter of Authorization (LOA) from the customer and prior approval from the Branch Office Manager, Mr. Hack’s sales assistants delivered checks to the customer’s spouse which were drawn on the accounts of the customer. Consequently, Mr. Hack was fined $10,000 and suspended from association with any FINRA member in any capacity for 10 business days. The suspension was in effect from August 15, 2016 through August 26, 2016.
Our law firm, Robert Wayne Pearce, P.A., handled a case in which Wells Fargo Advisors was negligent in its supervisory responsibilities concerning unauthorized LOAs. The arbitration panel entered an award of over $2.8 million against Wells Fargo Advisors for their negligence in failing to safeguard assets in the customer’s account. Have you suffered losses in your Raymond James account due to unauthorized LOAs and/other any other type of prohibited conduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Raymond James stockbrokers who may have engaged in misconduct and caused investors losses.
FINRA rules require brokerage firms to establish and implement a reasonable supervisory system to protect customers from the risks associated with investing. The implementation of the rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, as well as the brokerage firm’s own policies and procedures. If broker-dealers and their supervisors fail to establish and implement these protective measures, they may be held liable to account holders for investment losses which stem from their employees’ misconduct. Therefore, investors who have suffered losses due to a brokerage firm’s failure to supervise its representatives can bring forth claims to recover damages against firms, like Raymond James, which have a duty to supervise employees in order to protect their customers’ interests.
Have you suffered losses in your Raymond James account due to unauthorized account withdrawals or any other type of stockbroker misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Raymond James stockbrokers who may have engaged in misconduct and caused investors losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.