Former Raymond James Broker Suspended For Failure to Respond to FINRA Request for Information
Stephen Allen Murray (CRD#: 343722) was previously registered with the Financial Industry Regulatory Authority (FINRA) as a securities broker and investment advisor. From February of 2013 to February of 2018, this broker was employed at Raymond James & Associates, Inc. (CRD#: 705) at branch location in Palm Beach Gardens, Florida.
Failure to Cooperate With FINRA
Earlier this year, FINRA suspended Stephen Allen Murray for his failure to comply with a request for information. Under FINRA Rule 8210, all registered representatives have a professional obligation to provide FINRA investigators with information when it is requested. More specifically, FINRA regulations require that registered representatives must produce documents and records when requested by the agency. The regulations also require that registered representatives must submit to on-the-record testimony when requested by the agency.
These rules are critically important to ensure that FINRA investigations can proceed in the most effective manner. If brokers and brokerage firms fail to cooperate, the rights and interests of investors could be put at risk. The failure to comply with regulatory investigations can result in suspension. Mr. Murray was suspended on May 4th, 2018. At that date, FINRA noted that Mr. Murray has three months to comply with the agency’s initial request. If this broker does not take action by August 7th, 2018, he will be automatically barred from the industry.
Customer Dispute: Settlement Reached Over Excessive Trading Allegations
Former Raymond James broker Stephen Allen Murray has ten disclosures listed on his FINRA BrokerCheck record. Most notably, in the spring of 2017, while he was employed at a Raymond James Branch office in Palm Beach Gardens, FL, an investor filed a complaint alleging several causes of action against this broker. Specifically, this investor alleged that Mr. Murray:
- Made excessive trades on his brokerage account (churning);
- Made unauthorized transactions on his account;
- Acted in a negligent manner;
- Breached the terms of an investment contract; and
- Breached his fiduciary duty.
This investor also alleged that Mr. Murray violated multiple FINRA rules, including the suitability rules, which requires that brokers ensure that transactions are reasonably suitable for their specific client, and FINRA Rule 2330, which require registered representatives to abide by certain standards when selling or recommending variable annuities.
The investor in this dispute requested $100,000 in financial compensation. According to FINRA records, this complaint was eventually settled for $60,000.
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