According to the Virginian Pilot, former broker Jeffrey Scott Davis of Virginia Beach was sentenced in U.S. District Court to 4 1/2 years in prison for stealing nearly $200,000 from five other elderly clients.
The report alleged that Davis embezzled from the elderly clients accounts and used the funds to pay for his credit cards debts. Davis was working as an independent broker for Ameriprise Financial at the time. According to court documents Ameriprise reimbursed the clients.
Brokerage firms have a responsibility to to adequately monitor the activities of their employees. When a broker, like Davis, misappropriates funds from clients and violates securities laws the brokerage firm may be liable for negligent supervision of their broker and responsible for negligent supervision.
The White Law Group is committed to the helping victims of investment fraud. If you have suffered losses due to your investment with Jeffrey Scott Davis or another broker and would like to speak to a securities attorney about your potential to recover those investment losses, please call The White Law Group at (561) 807-6804 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 Vero Beach, Florida and Chicago, Illinois.
For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.