National investment fraud lawyers KlaymanToskes is investigating barred broker James Edward Lyons (CRD# 1020397) following the filing of a customer complaint that alleges he engaged in unauthorized trading and misrepresented to his former firm, Raymond James, that the trading was instead authorized. The complaint further alleges James E. Lyons concentrated the customer’s accounts in risky oil and gas securities.
According to FINRA Brokercheck, James Edward Lyons has ten customer complaints and was previously registered with Raymond James & Associates, Inc. in Shreveport, Louisiana from 2013 to 2017. The broker left the firm in 2017 and was “terminated due to customer allegation of unauthorized trading.”
James Lyons was barred from acting as a broker or associating with any broker-dealer firm in all capacities by the Financial Industry Regulatory Authority (“FINRA”) in 2018.
Former customers of James Edward Lyons who suffered investment losses while he was affiliated with Raymond James are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com for a free consultation to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Out of James Edward Lyons’ ten customer complaints, eight have cited unauthorized trading as a cause of action for the complaint. While the complaint previously mentioned above is pending, five complaints have been settled in favor of the investors and one has received an arbitration award. The remaining 3 complaints were closed and/or denied by the firm.
Multiple customers filed a complaint against Lyons in November 2017 that received an arbitration award that alleged unsuitable investments in “various oil and gas master limited partnerships and unit investment trusts, including Linn Energy, Memorial Production Partners, Calumet Partners and Cushing MLP Funds.” Some customers also alleged overconcentration and an alleged unauthorized trading pattern in their accounts.
As a result, Raymond James was ordered to pay $2,335,802.06 in restitution to customers, as well as $111,000 in hearing session fees and $140,000 in expert witness fees, according to the award. The complaint further alleged violations of FINRA and Industry Standard Rules; Breach of Contract; Breach of Federal and State Laws; Fraudulent and/or Negligent Representation; Fraudulent Concealment; Unauthorized Trading; Overconcentration and Suitability.
Lyons’ five settled complaints are listed below:
Filed 5/4/2020: Investor alleged unauthorized trading and unsuitable investments.
(Settled for $350,000)
Filed 6/18/2019: Investor alleged unauthorized trading, suitability, overconcentration, mismarking trades, self-dealing, failure to disclose risk, breach of contract, fraudulent representation, concealing costs, and conflict of interest.
(Settled for $2,584,333)
Filed 9/5/2018: Investor alleged unsuitable investments & over-concentration.
(Settled for $677,000)
Filed 5/4/2020: Investor alleged unauthorized trading and unsuitable investments.
(Settled for $350,000)
Filed 4/29/2016: Investor alleged breach of duties; churning; fraudulent omissions; Federal securities law violations; Louisiana Securities Law Violation; unauthorized trading; and Suitability.
(Settled for $400,000)
filed 10/5/2011: Investor alleged unsuitability, misrepresentation and unauthorized trading with regard to mutual funds, stock and unit investment trusts.
(Settled for $152,000)
Unauthorized trading is a securities violation which occurs when a broker/financial advisor engages in the purchasing or selling of securities in a non-discretionary customer account without prior customer authorization. Unauthorized trading represents a sales practice violation.
In some situations, a broker/financial advisor may receive written “discretionary” authorization to make transactions on the behalf of their customer. However, the financial professional cannot misuse that authority to make commissions from excessive trading or “churning”, or unsuitable investment strategies.
In 2018 James Edward Lyons entered into a Letter of Acceptance, Waive, and Consent with FINRA’s Department of Enforcement in which he was permanently barred from acting as a broker in the securities industry.
Stockbrokers, financial advisors, and their firms are responsible for conducting customer-related business in compliance with Financial Industry Regulatory Authority (FINRA) rules and guidelines. This includes their responsibility to provide suitable investment advice.
In the event of non-compliance with securities industry standards by a broker/investment advisor which leads to a customer incurring investment losses, brokers/financial advisors and their firms may be held liable through a FINRA arbitration claim.
Our firm believes FINRA arbitration is the most ideal path for investors seeking to recover investment losses, as arbitration is a more efficient and productive use of investors’ time and resources over a court proceeding. Investors can learn more about the types of securities violations they may be experiencing by visiting our account activity violations page.
Our experienced investment loss attorneys can help you determine if your investment losses are a result of the misconduct and/or securities violations of your financial professional and firm. Contact KlaymanToskes today for a free and confidential consultation at (888) 997-9956, or through email at lklayman@klaymantoskes.com to learn more about the arbitration process.
We offer legal services on a contingency basis, meaning we do not collect attorney’s fees unless we are able to obtain a recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
Lawrence L. Klayman, Esq.
888-997-9956