Marquardt Law Office LLC is interested in speaking with individuals who suffered losses while investing with James Edward Lyons. On June 4, 2018, the Financial Industry Regulatory Authority, Inc. (FINRA) barred the former Raymond James and Morgan Keegan broker from associating with firms registered with FINRA. FINRA registers and regulates securities brokers and brokerage firms.
In a Letter of Acceptance, Waiver and Consent (AWC), FINRA stated it barred Lyons because he declined to provide sworn testimony during FINRA’s investigation. FINRA reported it was investigating Lyons after he was terminated from Raymond James due to “customer allegations of unauthorized trading.”
Lyons has seven customer disputes in his FINRA BrokerCheck records. Three claims were either denied or closed-with no action. However, a claim filed in 2011 alleging Lyons unsuitably recommended and misrepresented investments and committed unauthorized trading settled for $152,000, including a $20,000 contribution from Lyons. Another claim filed in 2016 alleged Lyons fraudulently churned an account and settled for $400,000. Lyons did not contribute to this settlement.
Claims filed in October and November 2017 are still pending, which allege Lyon’s misconduct included fraud, unsuitable recommendations, breach of fiduciary duty, or negligence. One was filed on behalf of several customers and seeks $5,000,000 of losses that Lyons allegedly caused from 2001 through 2017.
James Edward Lyons first entered the securities industry in 1981. He was registered as a General Securities Representative with Morgan Keegan & Company, Inc. from August 1993 through February 2013 and Raymond James & Associates, Inc, from February 2013 through May 2017. He has not been registered with a firm since.
Options to Recover Losses
Brokers must recommend only suitable investment products and strategies to their customers. Suitability is based on factors such as a customer’s age, investment objective, risk tolerance, investment experience, and financial status and needs. Additionally, brokers must obtain a customer’s permission before exercising discretion to place trades in their accounts. Failure to do so is a violation called unauthorized trading.
Moreover, brokerage firms must reasonably supervise their brokers to ensure they do not commit misconduct. Customers may pursue claims against firms to recover losses caused by their brokers’ misconduct.
If you have questions about losses you or someone you know suffered while investing with James Edward Lyons, contact Marquardt Law Office LLC to receive a free phone consultation.
Marquardt Law Office LLC is a securities law firm that represents clients nationwide who have suffered losses due to misconduct such as fraud and negligence. Most cases will be handled on a contingency fee basis, meaning there is no attorney fee if a recovery is not obtained.
