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HomeLife InsuranceRaymond James Fined $500K Over Rep Who Stole From WWII Vet

Raymond James Fined $500K Over Rep Who Stole From WWII Vet


What You Have to Know

  • Raymond James, with out admitting or denying the SEC’s findings, agreed to pay $500,000 to settle costs it didn’t supervise the rep.
  • Frederick Stow was sentenced to 5 years in jail in 2021.

The Securities and Trade Fee on Thursday ordered Raymond James & Associates to pay a penalty of $500,000 for allegedly failing to oversee a former registered consultant and dealer who was sentenced to 5 years in jail final 12 months for misappropriating greater than $900,000 from two older purchasers from October 2015 by April 2019.

With out admitting or denying the SEC’s findings, Raymond James consented to the penalty and a censure to settle the dispute.

Raymond James didn’t instantly reply to a request for touch upon Friday.

In response to the SEC’s order, filed Thursday, Frederick M. Stow of Franklin, Tennessee, misappropriated $901,500 from one of many purchasers between October 2015 and April 2019. After that consumer — a World Struggle II veteran — died on the age of 98, Stow went on to misappropriate a further $22,400 from one other older consumer.

In June 2018, supervisors referred issues about Stow’s administration of the primary consumer’s accounts to Raymond James’ Senior-and-at-Danger-Purchasers (SARC) group, which had been fashioned in late 2017 to reply primarily to potential exterior threats of monetary exploitation, in accordance with the SEC order.

The order alleged that after SARC declined to take motion, the Raymond James supervisors didn’t examine the issues additional due to an absence of clear communication from the agency in regards to the scope of SARC’s investigation and the method for subsequent steps after SARC’s work.

Of the $901,500 misappropriated from the primary consumer, $148,000 was drawn between the top of the investigation and when the dealer confessed his fraud in Might 2019, in accordance with the SEC.

The SEC order discovered that Raymond James didn’t develop insurance policies and procedures moderately designed to speak clearly to supervisory and compliance workers SARC’s course of or the scope of SARC’s work in supporting supervisors.

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