American Portfolios Representative Fined and Suspended for Unsuitable Mutual Fund Switches

Jeffrey Davidson, a registered representative employed by the Stuart, Florida branch of American Portfolios Financial Services, Inc. (American Portfolios), 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 made unsuitable mutual fund switch recommendations which cost his customers approximately $46,000 in unnecessary sales charges. According to FINRA, Jeffrey Lee Davidson, of Stuart, Florida, recommended a series of mutual fund switches in 12 customer accounts which were unsuitable for those customers. Mr. Davidson recommended that the customers, one of whom was 97 years old and 5 others were 65 or older, purchase Class A mutual funds, for which they paid commissions and sales charges. He then recommended that they sell the mutual funds within less than one year of the purchase. Mr. Davidson used the funds from the sales of the mutual funds to purchase other mutual funds, for which the customers paid additional commissions and fees.

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