Florida Broker Suspended, Fined for Mishandling Customer Information
John Stanley Eads (CRD#: 2764843) is a previously licensed securities broker. From 2009 to 2017, Mr. Eads was employed as a securities representative for AXA Advisors, LLC. After leaving that firm, he served as a broker for Lion Street Financial, LLC (2017 to 2018). In February of 2018, John Eads was discharged by Lion Street Financial following allegations that he mishandled customer information. Below, our Miami investment fraud attorneys explain the allegations against this financial advisor.
FINRA Sanctions: Former Lion Street Financial Broker John Stanley Eads
Following his discharge from Lion Street Financial, FINRA opened up an investigation into the allegations raised against former Florida financial advisor John Stanley Eads (FINRA Disciplinary Action NO. 2018057322601). In reviewing his conduct, FINRA determined that Mr. Eads had mishandled customer information by:
- Failing to safeguard the sensitive personal information of clients;
- Causing his brokerage firm to violate SEC regulations; and
- Using a personal email for business purposes, thereby preventing material correspondence between him and his clients from being recorded and preserved.
In this case, neither Lion Street Financial nor FINRA was not able to conduct a complete investigation into John Stanley Eads because many of his emails were inaccessible. Without admitting or denying wrongdoing, Mr. Eads accepted the regulatory agency’s proposed penalties—including a $15,000 fine and a 90-day suspension from the securities industry.
Prior Customer Complaints Against John Stanley Eads
John Stanley Eads was initially registered as a securities representative in 1997. Since that time, several investor complaints have been filed against this broker. Specifically, the Financial Industry Regulatory Authority (FINRA) reports that Mr. Eads agreed to settle the following three customer claims:
- In 2006, an investor filed a complaint alleging that investment guidance offered by Mr. Eads resulted in him paying unnecessary tax penalties. The claim was eventually settled for $7,072.00.
- In 2013, an investor filed a complaint alleging that financial losses were suffered in unsuitable variable annuities. The claim was eventually settled for $100,000.00.
- In 2016, an investor filed a complaint contending that Mr. Eads recommended unsuitable annuity investments. The claim was eventually settled for $85,821.20.
Investors who suffered losses due to fraud or negligence of a securities representative have the right to seek financial compensation. In most cases, these claims will be resolved through a FINRA arbitration proceeding. If you are considering bringing a securities arbitration claim, you need a lawyer who understands FINRA’s unique rules and procedures
Consult With a Miami, FL FINRA Arbitration Lawyer Right Away
At Carlson & Associates, P.A., our Florida investment lawyers are proud to for the rights and interests of investors. If you suffered financial damages because of broker or brokerage firm misconduct, we can help. Call us right away for a confidential review of your case. With a law office in Miami, we provide legal representation to investors throughout Florida.