A previously registered broker James Blake Daughtry was barred by the Financial Industry Regulatory Authority (FINRA) for failing to comply with their instructions and is currently the subject of customer dispute disclosures files on the allegation of fraud among others.
Securities lawyer Alan Rosca, of Rosca Scarlato LLC law firm is investigating conduct related to the bar of James B. Daughtry by FINRA for failing to comply with their directives as well as the customer dispute disclosures initiated against him on the allegation of fraud, among others.
Prior to the bar, former broker James Daughtry was registered with Kestra Investment Services, a FINRA member firm, between February 2015 and March, 2020. He was registered with the firm when he allegedly carried out the acts leading to the bar and customer dispute disclosres.
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Ex Broker James Daughtry Barred by FINRA
Publicly available information reviewed by the securities lawyer showed that the bar by FINRA and the customer dispute disclosures were initiated between June 2020 and August 2020. According to the information on his FINRA Brokercheck reports, the regulatory action was made final on March 18, 2020.
FINRA initiated the regulatory action on the allegation that James Blake Daughtry failed to comply with the regulatory authority’s request for him to appear for on-the-record testimony. The request was allegedly made pursuant to an investigation initiated by FINRA against him on alleged fraudulent and unauthorized transactions he allegedly carried out on customers’ accounts.
According to the Letter of Acceptance, Waiver and Consent (AWC) signed by James Daughtry, he allegedly acknowledged through his counsel that he received FINRA’s request to appear and chose not to appear at any time. By virtue of the AWC, without admitting or denying the findings, he consented to the sanction imposed by the regulatory authority. He was barred indefinitely in all capacities starting from March 18, 2020. This bar by FINRA allegedly led to his discharge from Kestra Investment Services on the same day.
Daughtry Is the Subject of Customer Dispute Disclosures
Securities lawyer Alan Rosca also found reported in his FINRA brokercheck reports that former broker James Daughtry was involved in three customer disputes on allegations including fraud and unauthorized transactions.
In the latest customer dispute initiated on July 29, 2020 in the Circuit Court of Houston County, Alabama, customers allege that while Daughtry was registered with Kestra Investment Services, he solicited clients to open accounts with a third party registered investment advisor which caused customers $231,752 in losses. The allegations also add that the SEC found that the RIA in question have been engaged in fraud.
In July 2020, a separate lawsuit was filed on identical allegations, only in this case the alleged damages reportedly amount to $1.5 million. According to the report made by AL.com, James Daughtry and his co-conspirators allegedly perpetrated this fraud by copying clients signatures and pasting them on several documents to open accounts in their name in different financial institutions.
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The earlier customer dispute disclosure was instituted in May 2020. The client initiated a FINRA dispute on the allegations of unauthorized transactions and making misrepresentations. The client also alleges negligence and breach of fiduciary duties. From this dispute, the client is seeking to recover $65,000 in damages.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
Concerned about investments with ex broker James Daughtry? Securities Lawyer Investigating
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to James B. Daughtry’s bar by FINRA for failing to appear as requested in connection with an investigation against him and the customer dispute disclosures on the allegations of fraud and unauthorized transactions among others.
The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related to James Daughtry’s alleged misconduct may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.