Securities Arbitration Lawyers BlogFINRA Suspends Broker Jerry Rice
Jerry Rice (CRD#: 375290) is a previously registered broker/advisor whose last known employer was Raymond James Financial Services (CRD#: 6694) of Tinton Falls, New Jersey. His previous employers include Robert Thomas Securities (CRD#: 10147) of St. Petersburg, FL, Smith Barney (CRD#: 7059) of New York City and Lehman Brothers (CRD#: 7506), also of New York City. He has been in the industry since 1968.
Jerry Rice was allowed to voluntarily resign from Raymond James after it was discovered that he received monetary gifts in excess of the yearly limits from one of his elderly clients, an 89-year-old widow. He and several family members received a total of $477,000 from this client.
However, like many FINRA broker dealers, Raymond James prohibits such gifts and bequests due to a conflict of interest. From 2013 through 2017, Jerry Rice attested in his yearly compliance questionnaires that he understood that brokers were strictly prohibited from receiving monetary gifts from clients without the firm’s permission. Brokers are also prohibited from being named beneficiaries in their wills. Should the broker discover that they have been unknowingly named, he or she is required to immediately notify the firm. The exception is if the client is also an immediate relative.
Rice failed to notify the firm that he was a beneficiary in the unrelated client will as required by Raymond James. Rice repeatedly stated in his yearly compliance requirement for him that he was not in any position to become a beneficiary in a client’s will nor was he aware of any possibility. He also never disclosed the bequests of which he was already made aware to the firm as required.
A FINRA disciplinary hearing saw Rice sign a letter of acceptance waiver and consent, which included sanctions of a $10,000 fine, a six-month suspension in all capacities, and prohibits affiliation with any FINRA member broker in any capacity. Rice’s suspension ends on 3/19/2022.
FINRA generally prohibits financial advisors from borrowing money from customers. However, considering the insights stockbrokers have into their customers financial resources and the trust they put in their advisors, our investment fraud attorneys continue to learn about more cases of financial advisors improperly borrowing money from customers or convincing them to invest in person projects including real estate deals or other investments. Other circumstances include investors convinced to make brokers executors or beneficiaries of estates.
Your Financial Advisor Should Not Borrow Money From You
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.