January 2018 – Beaumont, Texas
TEXAS STATE SECURITIES BOARD SUSPENSION-On January 30, 2018 Texas Securities State Securities Board (TSSB) Commissioner Travis J. Iles entered a Disciplinary Order suspending Jason N. Anderson, a former LPL FInancial stockbroker, for charging unreasonable fees to clients.
The order suspended Anderson for 90 days.
According to the Texas order, Anderson, while employed by LPL Financial LLC, recommended an active-trading strategy based on an analysis of a stock’s current price compared with its historical prices. He recommended the active-trading program to clients who had stated their preference for growth with a moderate amount of risk.
The TSSB order alleged that the active-trading program recommended by Anderson would have had to generate extraordinary returns just to offset the trading costs and commissions paid to Anderson. In one example, a client’s costs were nearly 30% of the equities held in the account.
FINRA SUSPENSION– In October 2017 Jason N. Anderson was suspended indefinitely by FINRA who noted on his official record: “Respondent Anderson failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.”
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In May 2017, two elderly former customers of LPL Financial filed a class action lawsuit against LPL Financial and their former broker Jason N. Anderson seeking damages on behalf of current and former clients of Anderson. The suit alleges unauthorized trading, churning and mismanagement of customer accounts from 4/2007-1/2016.
LPL Financial challenged the suit that was filed in Jefferson County, TX, and the case was removed to federal court for the Eastern District of Texas. In August 2017, the case was remanded back to the 58th Judicial District Court of Jefferson County, Texas.
According to his FINRA record, Anderson worked for LPL Financial from 2007 until January 2016 when he was fired for for conducting discretionary trading in customer accounts, in violation of firm policy.
Following his discharge from LPL Financial, Anderson was employed by Kovack Securities for a few months, 1/2016-5/2016. Kovack Securities discharged Anderson because they found incomplete signed documents during a firm audit.
Anderson then joined IFS Securities from 5/2016-4/2017. He is not currently registered with any firm.
A discretionary account is one that allows a broker to buy and sell securities without first obtaining the client’s consent. Discretionary trading generally requires that permission be granted by the client in writing. Most accounts are non discretionary, meaning the broker is required to consult with the customer and obtain permission before executing trades. Trades made in non discretionary accounts without consulting with the customer are unauthorized trades.
Investor suits for damages are generally required to be pursued in arbitration before the Financial Industry Regulatory Authority (FINRA) in accordance with the new account agreement customers sign when opening an account. FINRA arbitration is a method of dispute resolution that is generally much more expedient and less costly than court litigation.
If you had an account with Jason Anderson and suffered losses due to unauthorized trading, churning, mismanagement or other reasons, contact us to learn how you may be able to recover damages from his prior employer.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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