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Broker Misconduct Investigation: Raymond Lent (The Putney Financial Group)

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Updated on: October 28, 2024

If you have investment losses due the actions of Raymond Lent, contact the investment loss attorneys at KlaymanToskes today at +1 (888) 997-9956 or request a free case evaluation to determine if you are eligible for recovery.

National investment loss lawyers KlaymanToskes is investigating broker Raymond Lent (CRD# 817645) of Portsmouth Financial Services, and doing business as The Putney Financial Group.

According to FINRA BrokerCheck, Raymond Lent (d/b/a The Putney Financial Group) has been hit with charges by the Securities and Exchange Commission (“SEC”) for allegedly breaching fiduciary duty and failing to provide accurate disclosures to customers while recommending high-commission variable annuity investments, resulting in a $1,065,366 settlement with the SEC. Lent and his firm have reportedly been ordered to pay disgorgement of $707,129.58, prejudgment interest of $183,236.60, and civil penalties of $175,000. 

According to FINRA BrokerCheck, Lent has been in the securities industry for 48 years and has eight disclosures on his FINRA CRD report, six of which are customer disputes that have been settled in favor of the investors. Several of these settled complaints have related to unsuitable recommendations to invest in high-risk and illiquid GWG L Bonds.

Investors that suffered losses with broker Raymond Lent are encouraged to contact attorney Lawrence L. Klayman, Esq., at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.

Investment Losses with Broker Raymond Lent?

Investment Losses with Broker Raymond Lent?

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Who is Broker Raymond Lent?

Raymond Lent (CRD# 1432593) is a broker who is currently under investigation for alleged unsuitable recommendations of The Putney Financial Group. He is also facing multiple customer disputes of investment losses, which have yet to be resolved.

SEC Orders Raymond Lent and Putney Financial Group to Pay $1M Settlement

The Securities and Exchange Commission (SEC) has ordered investment advisor Raymond Lawrence Lent and his firm, The Putney Financial Group, based in San Rafael, California, to pay $1,065,366 to settle issues related to breaches of fiduciary duties in connection with the receipt of third-party compensation by Putney’s affiliated broker-dealer, and Lent, without fully disclosing the related conflicts of interest.

The SEC found that from at least April 2016 through October 1, 2021, The Putney Financial Group (“Putney”) recommended to its advisory clients variable annuity investments that were sponsored by insurance companies that paid upfront sales commissions to Portsmouth Financial Services (Putney’s affiliated broker), and to Raymond Lent in his capacity as a representative of Portsmouth. Despite the availability of lower-cost, fee-based annuities with the same features, Putney reportedly recommended the commission-based products, which carried higher ongoing costs for clients. In many cases, clients paid more in total than they would have, had they purchased the lower-cost options.

Additionally, Putney’s offerings of cash sweep money market funds for its clients during this period was purportedly influenced by revenue-sharing payments to Portsmouth. According to the SEC, these funds were more expensive than other available options that would have provided clients with higher yields. For years, Putney allegedly did not disclose these revenue-sharing arrangements, nor did it inform clients of the availability of better-performing, lower-cost alternatives, which created a significant conflict of interest.

It wasn’t until September 2019, following an SEC examination, that Putney disclosed the conflict of interest related to revenue-sharing payments. However, Putney still failed to mention the existence of more advantageous money market funds that did not involve such payments.

Signs Investors Should Look Out For About Their Brokerage Accounts

As an investor, there are a few signs that you should look out for if you believe you may have a claim against broker Raymond Lent. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encourage to contact our firm immediately if you have experienced any of the following:

  • You have substantial losses in your investment accounts
  • You received a call, email, or other communication from your broker’s supervisor or manager regarding your portfolio
  • Your broker misrepresented investment opportunities, or failed to disclose details about investments
  • You notice unauthorized transactions in your investment accounts
  • Your broker is not returning your calls or emails
  • You filed a complaint with your brokerage firm that has not been resolved
  • You see a mistake on your statement, or receive a fraudulent statement

Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.

Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.

If you suffered losses with broker Raymond Lent, or have concerns regarding your investment portfolio at The Putney Financial Group and/or Portsmouth Financial Services, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.