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Arbitration process

James Blake Daughtry of Dothan Alabama a stockbroker formerly registered with Kestra Investment Services LLC is referenced in a customer initiated investment related civil action where the customer sought $231,752.00 in damages supported by accusations that they had been steered by Daughtry towards establishing investment accounts with an investment adviser who Securities Exchange Commission (SEC) found to have committed fraud. Civil Action No. 38-CV-2020-900337 (Aug. 14, 2020).

Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Daughtry has been referenced in two more customer initiated investment related disputes containing allegations of his misconduct during the period that he was employed by Kestra Investment Services. On June 22, 2020, a customer filed an investment related FINRA securities arbitration claim concerning Daughtry’s activities in which they requested $65,000.00 in damages based upon accusations that there was a breach of fiduciary duty by the stockbroker and that his negligence resulted in the customer’s losses. FINRA Arbitration No. 20-01649. The claim alleges that misrepresentations had been made to the customer and that transactions were executed by Daughtry without the customer’s knowledge or consent.

Daughtry is also the subject of a customer initiated investment related civil action where the customer sought $1,500,000.00 in damages founded on allegations of the customer being recommended to invest through someone who SEC found to be a fraudster. Civil Action No. 38-CV-2020-900301 (July 23, 2020).

Public Disclosure additionally confirms that Daughtry has been barred from associating with any FINRA member in any capacity supported by findings that he failed to be cooperative during the time that he was investigated for engaging in unauthorized and fraudulent transactions in the accounts of Kestra Investment Services customers. Letter of Acceptance Waiver and Consent No. 2020065293201 (Mar. 18, 2020). According to the AWC, Daughtry was instructed by FINRA to provide recorded testimony, but Daughtry’s legal counsel indicated to the regulator that the stockbroker would not oblige. FINRA found that Daughtry’s failure to testify constituted the violation of FINRA Rules 2010 and 8210.