October 31, 2019 Comments (0) Current Investigations, Securities Fraud

FINRA Panel Awards $3.2 million to Raymond James Customers

FINRA award Involving Raymond James & Eddie Lyons, featured by Top Securities Attorneys, The White Law Group

Clients Allege Unauthorized Trades in MLPs by Financial Advisor Eddie Lyons

According to public records, FINRA Arbitrators awarded more than $3.2 million to a group of 27 Raymond James customers who alleged unauthorized trading in oil and gas ventures.

On October 25, an all-public Financial Industry Regulatory Authority Inc. panel reportedly ruled that Raymond James was liable for transactions allegedly conducted by former financial advisor James Edward Lyons (Eddie Lyons), who was reportedly barred last year from the securities industry.

According to the FINRA award, between February 2013 through November 2017, Lyons allegedly invested the claimants in oil and gas master limited partnerships and unit investment trusts such as Linn Energy, Memorial Production Partners, Calumet Partners and Cushing MLP Funds, allegedly without their approval.

The claimants portfolios were purportedly over concentrated with nearly 80% in the oil and gas master limited partnerships, according to reports, and when oil prices took a dive in 2014, so did the value of their portfolios.

The arbitrators reportedly awarded a total of about $3.2 million, plus interest, to 27 customers, mostly in compensatory damages. The claimants reportedly asked for $8.9 million in damages at the close of 73 arbitration hearings.

Recovery of Oil and Gas MLPs Losses

According to reports, since 2009, MLPs have raised more than $100 billion from initial public offerings and follow-on stock sales. Investors appear to have been lured in to these products by the companies’ assurances of steady payout increases and tax advantages.

Most MLPs earn money by charging oil-and-gas producers to transport or store their products.  MLPs have also been popular in recent years because they have provided relatively high returns to otherwise income-starved investors.

Unfortunately for investors , most oil and gas MLPs are down substantially in the last year.

If your financial advisor over-concentrated your portfolio in high risk oil and gas investments you may have a viable claim to recover your losses.  Financial advisors are required to make suitable investment recommendations, accounting for your age, income, net worth, investment experience, and investment objectives.

Diversification is the key to reducing risk.  As such, over-concentrated exposure to any sector or investment, particularly volatile industries like oil and gas, can be unsuitable for many investors.

For a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.

 

 

 

 

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