In a recent development, a serious allegation has been brought against financial advisor Phillip Sutton and his employer, RAYMOND JAMES FINANCIAL SERVICES, INC. (CRD 6694). According to the client’s complaint, Sutton allegedly placed unauthorized trades in her investment account between November 7, 2022, and May 18, 2023. The settlement amount for this dispute reached $37,280.94, as reported in the advisor’s FINRA BrokerCheck report (CRD number 4199012).
This allegation raises significant concerns for investors who have entrusted their financial well-being to Sutton and RAYMOND JAMES FINANCIAL SERVICES, INC. Unauthorized trading is a severe violation of the fiduciary duty that financial advisors owe to their clients. It erodes the trust that forms the foundation of the advisor-client relationship and can lead to substantial financial losses for the affected investors.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Phillip Sutton and RAYMOND JAMES FINANCIAL SERVICES, INC. in connection with this allegation. With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses through FINRA arbitration. They offer free consultations to affected clients and operate on a “No Recovery, No Fee” basis. Investors can reach out to them at their toll-free number: 1-800-856-3352.
Understanding Unauthorized Trading
Table of Contents
Unauthorized trading occurs when a financial advisor executes trades in a client’s account without obtaining the client’s prior consent or exceeding the agreed-upon level of discretion. FINRA Rule 2010 requires financial advisors to observe high standards of commercial honor and just and equitable principles of trade. Engaging in unauthorized trading violates this rule and may also breach other FINRA regulations and federal securities laws.
In simple terms, unauthorized trading means that your financial advisor has made decisions about your investments without your permission. This can include buying or selling securities, changing your portfolio allocation, or engaging in high-risk transactions that do not align with your investment goals and risk tolerance.
The Consequences for Investors
Unauthorized trading can have severe consequences for investors. First and foremost, it can result in significant financial losses, as the trades executed may not be suitable for the investor’s risk profile or investment objectives. Moreover, unauthorized trades can trigger unintended tax liabilities, disrupt carefully planned investment strategies, and generate excessive transaction costs.
Beyond the immediate financial impact, unauthorized trading also violates the trust that investors place in their financial advisors. This breach of trust can lead to a breakdown in the advisor-client relationship, causing emotional distress and eroding the investor’s confidence in the financial markets as a whole.
Protecting Yourself from Unauthorized Trading
Investors can protect themselves from unauthorized trading by staying vigilant and monitoring their investment accounts regularly. Some red flags to watch out for include:
- Unexplained or unexpected trades in your account statements
- Trades that do not align with your investment goals or risk tolerance
- Excessive trading activity or high turnover in your account
- Difficulty reaching your financial advisor or receiving clear explanations for trades
If you suspect that your financial advisor has engaged in unauthorized trading, it is crucial to take action promptly. Document the suspicious activity, gather relevant account statements and correspondence, and consult with a qualified investment fraud attorney to discuss your legal options.
Recovering Losses through FINRA Arbitration
Investors who have suffered losses due to unauthorized trading may be able to recover their damages through FINRA arbitration. This process allows investors to seek compensation from their financial advisor and the employing brokerage firm in a private, out-of-court setting.
To initiate a FINRA arbitration claim, investors typically work with experienced investment fraud attorneys who can guide them through the process, build a strong case, and advocate for their rights. By pursuing FINRA arbitration, investors can hold their advisors accountable for misconduct and work towards recovering their financial losses.
The allegation against Phillip Sutton and RAYMOND JAMES FINANCIAL SERVICES, INC. serves as a reminder of the importance of diligence in selecting and monitoring financial advisors. By staying informed, asking questions, and acting quickly when misconduct is suspected, investors can better protect their financial well-being and seek recourse when necessary.
If you believe you have been a victim of unauthorized trading by Phillip Sutton or any other financial advisor at RAYMOND JAMES FINANCIAL SERVICES, INC., contact Haselkorn & Thibaut at 1-800-856-3352 for a free consultation. Their experienced investment fraud attorneys can help you understand your rights and explore your options for recovering your losses.
