The law firm of Oakes & Fosher is presently investigating the alleged misconduct of securities broker James Duffy. According to his publicly available FINRA BrokerCheck report, James Duffy has been the subject of multiple customer disputes.

James Duffy is a New York based securities broker. He has worked in the securities industry for thirty-two years. During his career, he has been registered with six different securities firms.

His Registrations

  • McLaughlin, Piven, Vogel Securities (1987-1994)
  • First Albany Corporation (1993-2000)
  • First Union Securities (2000)
  • Advest (2000-2006)
  • Merrill Lynch (2006)
  • Morgan Stanley (2006-Present)

The Allegations

  • In January of 2000, a customer alleged that a bond that James Duffy recommended was speculative and not consistent with their stated investment objectives and risk level. This case was settled for $7,000 in damages.
  • In September 2012, a customer alleged that their investments they purchased on James Duffy’s recommendation did not provide the stability of principal she sought after. This case was settled for $8,000 in damages.
  • In December 2016, a customer alleged that James Duffy recommended unsuitable investments.
  • In July 2018, a customer alleged that James Duffy recommended highly unsuitable investments in Puerto Rico municipal bonds. This case is currently pending. The customer is seeking an undisclosed amount in damages.

Puerto Rico Bonds 

Puerto Rico municipal bonds and closed-end funds were quite popular for a period of time due to the fact that they were triple tax exempt. Since Puerto Rico is not technically a state, these municipal bonds and closed-end bond funds were exempt from federal, state, and local taxes. Normally, for an individual to receive the tax exemption benefits of a municipal bond they have to reside where the bond is purchased. This was not the case with these Puerto Rico bonds and bond funds. Investors all across the nation could purchase these products while receiving the tax exemption benefits. This continued until Puerto Rico eventually filed for bankruptcy and defaulted on the bonds.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with James Duffy, please contact Oakes & Fosher for a free and private consultation.