Dax Aaron Seale (also known as Dax Seale), of Dallas, Texas, a stockbroker registered with Raymond James Associates Inc., was the subject of a customer initiated investment related civil action that was settled for $9,500.00 in damages based upon allegations that Seale engaged in unsuitable trading and “reverse churning,” when Seale was associated with Raymond James Associates Inc. Civil Action No. 8:20-CV-00195 (September 13, 2023).
“Reverse Churning” occurs when a securities broker-dealer charges a flat management fee based upon the value of the account, but that based upon the transactions effected in the account, the customer would be better off with a transaction based account. As set forth in Notice to Members 03-68, securities broker-dealers are required to periodically evaluate customer accounts, based upon costs and commissions, “at least annually” to determine whether “the type of account is appropriate in light of the services provided,” or if “alternative fee structures” are available. Notice to Members 03-68 (“It generally is inconsistent with just and equitable principles of trade—and therefore a violation of Rule 2110—to place a customer in an account with a fee structure that reasonably can be expected to result in a greater cost than an alternative account offered by the member that provides the same services and benefits to the customer.”
This is not the first time that Seale has been referenced in a customer initiated investment related dispute concerning Seale’s conduct in the securities industry. FINRA Public Disclosure shows that Seale was also referenced in a customer initiated investment related complaint filed on May 23, 2019, in which the customer requested $20,000.00 in damages based upon allegations that Seale made unsuitable investment recommendations during the period that Seale was associated with Raymond James Associates Inc. This complaint was denied.
Seale has been associated with Raymond James Associates Inc. in Dallas, Texas since July 9, 2015.
