James Davis Trent, of Columbia, South Carolina, a stockbroker formerly registered with AXA Advisors LLC, was suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity pursuant to an Order Accepting Offer of Settlement issued by FINRA Office of Hearing Officers which contained findings that Trent made unsuitable investment recommendations to the firm’s customers. Department of Enforcement v. James Davis Trent, No. 2014041539301 (May 18, 2017).
According to the Order, from February 2013 to January 2014, four of the firm’s customers maintained accounts with AXA Advisors LLC, and Trent was the customers’ account representative. Apparently, customers’ transactions were effected pursuant to Trent’s recommendations, wherein Trent pushed a strategy consisting of trading class A mutual fund positions on a short-term basis. The Order revealed that in fourteen transactions, Trent recommended class A shares to be purchased and sold within a year; customers held their positions for an average of six months. Trent reportedly earned nearly $2,910.10 in commissions based upon the transactions effected in customers’ accounts; however, the customers incurred sales charges estimated at $6,362.50.
The Order stated that customers EM, RM, LW and LP communicated their objectives for investing in income and growth. RM was reportedly a sixty-four year old individual who effected purchases of class A shares issued by American High Income Funds and Investment Company of America based on the recommendations that Trent made. Shortly thereafter, RM was told by Trent to sell American High Income Fund and Franklin Income Fund, causing RM to incur $1,907.50 in front end loads.
Additionally, the Order reported that LW, a sixty-five year old individual, also effected class A purchases of Investment Company of America Fund and Franklin Income Fund based on Trent’s recommendations. Apparently, the customer incurred sales loads totaling $2,637.50 in connection with the purchases of investments. A mere three months later, Trent called for LW’s positions to be liquidated. Customers EM and LP purportedly effected comparable transactions pursuant to Trent’s recommendations, incurring high front end loads in the process.
FINRA indicated that it was pointless for customers to sustain fees and charges associated with Trent’s short-term trading strategy involving class A shares primarily due to the high costs of transactions. FINRA found that Trent did not have an adequate basis to believe that his recommendations were suitable. As a result, his conduct was found by the Office of Hearing Officers to be violative of FINRA Rules 2010 and 2111.
FINRA Public Disclosure reveals that on May 25, 2016, a customer filed an investment related written complaint regarding Trent’s activities, based upon allegations that Trent made misrepresentations to the customer in reference to a variable annuity.
On May 23, 2014, Trent’s registration with AXA Advisors, LLC, was terminated based upon allegations that he engaged in misconduct concerning the replacements of customers’ investments. From June 4, 2014, to February 22, 2017, Trent was associated with Allstate Financial Services, LLC.
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com
