Financial malpractice is a serious issue that can have devastating consequences for investors. One such case that underscores the gravity of such allegations involves Financial Advisor (FA) James Hyre of Raymond James Financial Services, Inc. (CRD 6694). The allegation, which is currently pending, was lodged on 9/15/2023 and is identified under case number 2429707.
The Allegation and Case Information
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The customer dispute centers around the claim that FA James Hyre sold certain securities in the client’s discretionary account without the client’s approval. It is important to note that this is a serious allegation as it involves a breach of trust and potentially illegal activities. The client has lodged a formal complaint against Hyre and Raymond James Financial Services, Inc., where Hyre has been a broker and investment advisor since 02/17/2005.
Understanding the Allegation and FINRA Rule
In simpler terms, the allegation is that Hyre made unauthorized trades in the client’s account. This is a serious violation of the Financial Industry Regulatory Authority (FINRA) rules. Specifically, it contravenes FINRA Rule 2010, which requires all members to observe high standards of commercial honor and just and equitable principles of trade. Unauthorized trading is viewed as a breach of this rule and can result in severe penalties.
Why This Matters to Investors
This case is of significant concern to investors as it highlights the potential risks associated with entrusting financial advisors with discretionary authority over their accounts. It underscores the importance of vigilant monitoring of account activities and the need for open and transparent communication between investors and their financial advisors. It also serves as a reminder that even advisors from reputable firms can engage in unauthorized activities.
Red Flags and Recovering Losses
Investors should be aware of certain red flags that could indicate financial advisor malpractice. These include unauthorized trades, excessive trading, and significant changes in account value. If you suspect malpractice, it’s important to act quickly. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating this matter and offers free consultations to clients. With over 50 years of experience and an impressive 98% success rate, they can help investors recover losses through FINRA Arbitration.
FINRA Arbitration is a dispute resolution process that is quicker and less formal than litigation. It can be an effective way to recover losses due to financial malpractice. Haselkorn & Thibaut operates on a “No Recovery, No Fee” policy, and can be reached at their toll-free number, 1-800-856-3352.
While the seriousness of the allegations against James Hyre and Raymond James Financial Services, Inc. cannot be overstated, it is worth noting that all individuals and firms are presumed innocent until proven guilty. However, this case serves as a stark reminder of the importance of vigilance and the potential risks inherent in the financial industry.
