James Blake Daughtry of Dothan, Alabama, a stockbroker formerly registered with Kestra Investment Services, is identified in an investment related lawsuit which was resolved for $65,000.00 in damages based upon allegations that Daughtry wrongfully solicited the investor’s funds to be held with an investment advisor that Securities and Exchange Commission (SEC) found to have committed fraud. Civil Action No. 38-CV-2021-900239. (January 14, 2022).
FINRA Public Disclosure shows that Daughtry has been identified in four additional customer initiated investment related disputes regarding accusations of his misconduct when employed by Kestra Investment Services. Daughtry is the subject of an investment related lawsuit in which the investor sought $1,500,000.00 in damages supported by accusations of the investor’s funds being directed to a fraudulently registered investment advisor because of Daughtry. Civil Action No. 38-CV-2020-900301 (July 23, 2020). The lawsuit alleges that the investor sustained losses because of Daughtry’s solicitation.
On August 14, 2020, another investor filed a lawsuit where they requested $231,752.00 in damages based upon allegations of Daughtry having steered the investor towards setting their accounts up with an investment advisory which SEC deemed fraudulent. Civil Action No. 38-CV-2020-900337.
On June 8, 2021, a customer initiated investment related FINRA securities arbitration claim concerning Daughtry’s activities was settled for $29,900.00 in damages founded on allegations of negligence and a breach of fiduciary duty by Daughtry concerning the customer’s investments at Kestra Investment Services. FINRA Arbitration No. 20-01649. The claim alleges that Daughtry misrepresented information relating to the customer’s account and that unauthorized trades were made by the stockbroker.
Daughtry is also referenced in a customer initiated investment related FINRA securities arbitration claim which was resolved for $20,000.00 in damages founded on accusations of the customer sustaining losses because of Daughtry’s solicitation of the customer’s funds to be relocated to a third-party investment advisor while Daughtry was associated with Kestra Investment Services. FINRA Arbitration No. 21-01127 (October 1, 2021).
Daughtry has been barred from associating with any FINRA member in any capacity supported by findings that he hindered an investigation into allegations of his unauthorized transactions during the time that Daughtry was registered with Kestra Investment Services. Letter of Acceptance, Waiver, and Consent No. 2020065293201 (March 18, 2020).
According to the AWC, Daughtry refused to testify in a FINRA investigation that centered on Daughtry’s potentially fraudulent and unauthorized transactions. Daughtry was asked to testify about his involvement in customers’ accounts. But Daughtry’s lawyer told FINRA on March 3, 2020, that Daughtry would not testify at any time. Daughtry violated FINRA Rules 2010 and 8210 for this reason.
Daughtry was employed by Kestra Investment Services between February 18, 2015, and March 18, 2020. The stockbroker was discharged by the securities broker dealer on March 18, 2020, given FINRA’s disciplinary action against him.
