James Davis Trent, of Columbia, South Carolina, a stockbroker formerly registered with AXA Advisors LLC, was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint containing allegations that he made unsuitable investment recommendations to customers. Department of Enforcement v. James Davis Trent, No. 2014041539301 (Apr. 27, 2017).
According to the Complaint, between February of 2013 to January of 2014, four retired customers of AXA Advisors, LLC, had accounts serviced by Trent, where all transactions in their accounts were recommended by him. The Complaint stated that his recommendations were based on trading customers’ Class A mutual fund positions on a short-term basis. Apparently, in fourteen transactions, Trent made recommendations to buy Class A shares only to recommend that the shares be sold in year, which resulted in customers holding the positions for just six months on average. The Complaint alleged that Trent earned nearly $2,910.10 in commissions based upon transactions effected in customers’ accounts; customers’ incurred sales charges estimated at $6,362.50.
Specifically, the Complaint alleged that customers EM, RM, LW and LP stated within their investment profiles that their objectives for investing consisted of income and growth. The Complaint stated that EM was an eighty-five year old individual, who invested $20,000.00 in Oppenheimer Global Opportunity A Fund. Apparently, EM paid a $950.00 sales load pertaining to the purchase, where $460.00 in commissions were paid to Trent as a result. Yet, two months later, EM sold the position pursuant to Trent’s recommendation of buying other equity positions. Customers RM, LW and LP purportedly effected similar transactions based upon Trent’s recommendations, where investments were held for short periods and exposed to high front end loads.
FINRA Department of Enforcement alleged that it was unnecessary for customers to suffer from fees and charges pertaining to Trent’s recommendations, especially when weighing the costs of buying and selling Class A shares in a short-term trading approach. The Complaint stated that the purchase of Class A shares for short-term trading was unsuitable given the costs of transactions. Particularly, FINRA alleged that Trent did not have an adequate basis to believe that his recommendations were appropriate for customers. Consequently, the Complaint alleged that Trent’s conduct was violative of FINRA Rule 2010 and 2111.
Trent’s registration with AXA Advisors, LLC, was terminated on June 9, 2014. From June 4, 2014, to February 22, 2017, he was registered with Allstate Financial Services, LLC.
Ian Ramsaran Persaud, of Columbia, Maryland, a stockbroker also currently registered with AXA Advisors, LLC, was named in a customer initiated investment related arbitration claim, which settled on March 21, 2016, for $195,489.96 in damages based upon allegations that Persaud made misrepresentations to the customer which induced the customer’s 2016 variable annuity purchase.
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
