Before joining Kestra in 2015, Daughtry worked for Ameriprise Financial Services, Securities America, Sterne Agee Financial Services, Wachovia Securities, Southtrust Securities, and Liberty Securities Corporation. He had been in the industry from 1999-2020.
James Daughtry Disclosures
James Daughtry has 2 disclosures on his publicly-available FINRA BrokerCheck report:
March, 2020: Kestra Investment Services, Inc discharged Daughtry for allegations that “Daughtry violated FINRA Rules 8210 and 2010 and was bar from associating with any FINRA member firm in any capacity.”
March, 2020: A regulatory disclosure states that “Without admitting or denying the findings, Daughtry consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA in connection with an investigation into potentially fraudulent and unauthorized transactions in customers’ accounts.” Daughtry was indefinitely barred from associating with a FINRA member in all capacities.
FINRA Arbitration Claim Filed
A FINRA arbitration claim has been filed against Kestra Investment Services on behalf of an investor who was a client of James Daughtry. The claim alleges that the investor is a semi-retired inexperienced investor who asked Daughtry to manage her IRA (Individual Retirement Account). The claim alleges that without the investor’s knowledge, her retirement savings were transferred to Graysail, and most of her money was lent to “Small World Capital”.
It is alleged that Kestra failed in their duty to supervise Daughtry, that he sold away his client, and the unauthorized transactions caused the client to lose most of her retirement money.
Selling away is when a broker recommends transactions to a client that are not approved by the firm they are registered with. This can involve significant risk for the client, and the broker may be motivated by the commission they earn for the transaction rather than what is best for their client.
Daughtry referred to his office as “The Daughtry Group”, but he was a registered representative of Kestra at the time of the alleged transactions. Therefore, Kestra had a duty to supervise his activities and can be pursued for damages in FINRA arbitration.
Did You Invest With James Daughtry Or Kestra Investment Services?
Silver Law Group is a nationally-recognized law firm with extensive experience recovering losses for investors in cases of stockbroker misconduct, including selling away and unauthorized transactions.
If you have losses related to selling away or other causes, contact Silver Law Group or call Scott Silver at (800)-975-4345 for a no-cost consultation. Most cases are taken on a contingent fee basis, so nothing is owed unless money is recovered for you.