Silver Law Group is investigating former Florida-based Moors & Cabot, Inc. (CRD# 594) and Raymond James & Associates, Inc. (CRD# 705) broker Scott A. Sibley (CRD# 1523981) after the Financial Industry Regulatory Authority (“FINRA”) opened an investigation in him over potential securities violations.
According to Sibley’s FINRA BrokerCheck report, FINRA opened an investigation into Sibley on January 19, 2017. The investigation involves potential violations of the Securities Exchange Act of 1934 and various FINRA rules.
In addition to the FINRA investigation, Sibley has 21 other disclosures on his BrokerCheck report. Of those 21 disclosures, 10 of those are settled complaints. Nine of complaints were settled in 2015, all of them alleging unauthorized trading, for hundreds of thousands of dollars.
In February 2015, Raymond James discharged Sibley because of the numerous customer complaints alleging unauthorized trading and improper use of time and price discretion.
Sibley currently has two complaints pending alleging various claims such as negligence, unsuitability, overconcentration, unauthorized trading, churning, and exploitation of the elderly. The two complaints allege almost $1 million in damages in the aggregate.
Raymond James employed Sibley at its Fort Lauderdale, Florida branch between 2007 and his discharge in 2015. Moors & Cabot employed Sibley from March 2015 to February 2017 at its Boca Raton, Florida branch.
When a customer opens an account with a broker and brokerage firm, the customer can choose whether or not he or she wants to give the broker to trade discretionarily in order to capitalize as quickly as possible on an ever-changing market. Often times, customers choose to reserve that right and have the final “OK” before a broker facilitates a transaction.
Unauthorized trading is when a broker facilitates a transaction without the permission of the customer in a non-discretionary account. According to FINRA, it is one of the common investor issues along with misrepresentation, cold-calling, and unsuitability.
Unauthorized discretion is a serious form of broker misconduct. A broker’s employing firm is responsible for overseeing the broker to prevent such misconduct. Failure to supervise is a claim made against a brokerage firm in these situations.
FINRA arbitration is a fast, efficient way to recover your lost investment funds due to unauthorized trading. We work on a contingency fee basis, meaning you pay us nothing unless we win and recover money for you.
If you have invested with Scott A. Sibley and Raymond James Stanley and have lost money doing so, you may be able to recover some or all of your losses. Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct through FINRA arbitration.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at firstname.lastname@example.org or toll free at (800) 975-4345.