Steven Farr Davis (also known as Steve Davis) of Wakefield Massachusetts a stockbroker registered with Royal Alliance Associates Inc. has been ordered to (1) cease and desist from violating securities laws or regulations (2) pay a $20,000.00 fine (3) disgorge ill-gotten gains and (4) refrain from seeking registration as a stockbroker or investment adviser representative in the Commonwealth of Massachusetts based upon accusations that fiduciary obligations to customers were breached through the stockbroker’s recommendations of inappropriate annuity exchanges to customers when associated with Royal Alliance. Massachusetts Securities Division Consent Order No. E-2018-0093 (Apr. 11, 2019).
According to the Enforcement Section’s Complaint, Davis breached a fiduciary duty to investors through transferring their American General annuities into Delaware Life products which provided them no benefit compared with their existing annuities. Transactions initiated by Davis allegedly caused the customers to sustain losses in interest while Davis generated profits. The Enforcement Section contended that Davis’ transactions were in violation of Massachusetts Uniform Securities Act.
Financial Industry Regulatory Authority (FINRA) Public Disclosure indicates that Davis has been referenced in a customer initiated investment related arbitration claim in which the customer had been awarded $3,760.00 in compensatory damages supported by Davis and FISCO Equity Inc. being found liable on the customer’s claims of causing the customer’s losses. According to the claim, mutual fund transactions that were facilitated in the customer’s account by the stockbroker failed to be suitable for the customer. The claim also alleges that investment information had been concealed from the customer when transactions were effected. The customer’s account had also allegedly been subject of negligence and unauthorized trades by the stockbroker.
Davis is also referenced in a customer initiated investment related complaint which was settled to resolve allegations that customers were not provided with a variable annuity policy by Davis when he was associated with Jefferson Pilot Securities Corporation.
Davis’ employment with Royal Alliance was terminated on March 27, 2018. Between March 30, 2018 and April 30, 2019, he was associated with J.P. Morgan Securities LLC.
