According to FINRA, Jeffrey Davidson (CRD# 1352867), an investment advisor with American Portfolios Financial Services since 2009, recently entered into a Letter of Acceptance Waiver and Consent (AWC) to settle allegations that he violated numerous industry rules and regulations.
According to the AWC, between May 2011 through May 2013, Davidson allegedly recommended 49 unsuitable mutual fund switch transactions in 12 customer accounts. Half of his customers were apparently over the age of 65, including a 97-year old. The alleged transactions involved Class A mutual fund shares which are typically intended to be held long term as repeated buying and selling of mutual fund shares can result in unsuitable transaction fees and commissions.
Per FINRA, Davidson allegedly recommended customers purchase Class A mutual fund shares and within less than a year he recommended customers sell those shares, despite significant upfront costs, and use the proceeds to purchase new Class A mutual fund shares subjecting the customers to more fees. As a result, the customers collectively incurred approximately $46,000 in unnecessary sales charges.
FINRA further alleged that as a result these actions, Jeffrey Davidson violated NASD Conduct Rule 2310, and FINRA Rules 2010 and 2111.
Jeffrey Davidson signed the AWC on 01/04/16 giving his consent to a three month suspension from association with any FINRA member and a $10,000 fine.
For the full FINRA allegations, see FINRA AWC No. 2013039482702.
The White Law Group is investigating the liability that American Portfolios Financial Services may have for failure to properly supervise Davidson. Brokerage firms are required to perform adequate due diligence on all investment recommendations to ensure that those recommendations are suitable for customers and comply with their responsibility for fair dealing. If a firm permits unsuitable investments to be made, the firm can be held responsible for the losses in a FINRA arbitration claim.
If you suffered losses investing with Jeffrey Davidson and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at (312)238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For more information on the firm, visit www.WhiteSecuritiesLaw.com.