Posted: June 9th, 2017
The New Jersey broker is also reported to have lied about his actions
Jeffrey Marc Grayson was recently suspended by the Financial Industry Regulatory Authority (FINRA) after an investigation found that he exercised discretion in four customer accounts without written approval from the customers. In addition, Grayson reportedly did not get permission from his member firm and he is alleged to have lied about his use of discretion on compliance documents.
Grayson didn’t admit or deny the finding, but he accepted FINRA’s two-month suspension, along with a $10,000 fine.
What Grayson is alleged to have done is considered unauthorized trading. A broker can only buy or sell securities in a customer account if they have been given discretionary trading authority. If they don’t get permission, this is a violation of FINRA rules and a possible breach of fiduciary duty.
Since 1981, Grayson has worked for six different firms:
- Gibraltar Securities Co. – Florham Park, NJ
- Tucker Anthony Incorporated – Boston, MA
- RBC Dain Rauscher Inc. – NYC
- J.B. Hanauer & Co. – Parsippany, NJ
- RBC Capital Markets, LLC – Parsippany, NJ
- Wells Fargo Advisors – Florham Park, NJ
It was in 1993 when Grayson was involved in his first customer dispute, with allegations accusing him of fraud, negligence, breach of contract, and other prohibited actions. There have been five subsequent disputes with an assortment of other charges, including unsuitability and misrepresentation. Of the complaints that have been settled or closed, complainants against Grayson obtained a total of $243,500 in restitution.
You can learn more about these complaints in Grayson’s BrokerCheck report, a complimentary service provided by FINRA.
A number of the clients who lost money because of Grayson’s alleged actions were able to regain a large percentage. If you were one of his clients and you believe that he violated and securities industry rules, you may consider speaking with to a securities arbitration attorney. Through arbitration, you may be able to recover lost funds. To learn how the process works, contact the Silver Law Group for a free consultation.
The attorneys at Silver Law Group are leaders in the field of securities arbitration. We represent individual and institutional investors across the United States who have lost money at the hands of a trusted financial advisor. Scott Silver is currently the chairman of the American Trial Lawyers Association, Securities and Financial Fraud Group and routinely represents investors in securities arbitration claims.
Call us at 800-975-4345 or fill out our online form. We work on contingency, so there is no fee unless you recover money.
OUR FREE PROMISE NO RECOVERY, YOU OWE US NOTHING
To contact our attorneys please fill out the form below.