The law firm of Oakes & Fosher is presently investigating the possible misconduct of former securities broker Jay Dee Jordan. According to his publicly available FINRA BrokerCheck report, Jay Dee Jordan has been the subject of multiple customer disputes.

Jay Dee Jordan was an Oklahoma based securities broker. He worked in the securities industry for twenty-eight years. During his career, he was registered with seven different securities firms.

His Registrations

  • E.F. Hutton & Company (1987-1988)
  • Shearson Lehman Hutton (1988-1990)
  • Paineweber Incorporated (1990-1995)
  • Rauscher Pierce Refsnes (1995-1998)
  • Dain Rauscher Incorporated (1998-2001)
  • Morgan Stanley (2001-2005)
  • WFG Investments (2005-2016)

The Allegations

  • In June 1995, a customer alleged that Jay Dee Jordan made unsuitable investment recommendations, misrepresented material details, breached his fiduciary duty, and churned their account. This case was settled for $175,000 in damages.
  • In June 2001, an attorney, on behalf of a customer alleged that Jay Dee Jordan made unsuitable trades and traded the customer’s account excessively. This case was settled for $86,500 in damages.
  • In July 2002, customers alleged that Jay Dee Jordan made unsuitable investment recommendations and made unauthorized trades. This case was settled for $500,000 in damages.
  • In July 2015, a customer alleged that Jay Dee Jordan traded their account without authorization from 2011 and 2015. This case is currently pending. The customer is seeking $164,644 in damages.
  • In March 2017, a customer alleged that Jay Dee Jordan made unsuitable investments on their behalf. This case is currently pending. The customer is seeking $4 million in damages.
  • Also in March 2017, another customer alleged that Jay Dee Jordan made unsuitable investments. This case is also currently pending. The customer is seeking $900,000 in damages.
  • Also in March 2017, customers alleged that Jay Dee Jordan recommended that they purchase a highly unsuitable unapproved REIT. This case is currently pending. The customers are seeking $3.8 million in damages.
  • In August 2017, Jay Dee Jordan was officially sanctioned by FINRA. The findings in this matter state he recommended and executed hundreds of unsuitable purchases of non-traditional ETS in the accounts of his customers. It was determined by FINRA that Jordan did not have a reasonable basis to believe that these incredibly complex products would be suitable for his customers. According to the findings, Jay Dee Jordan’s unsuitable recommendations resulted in $8.4 million in losses to his customers while generating $810,000 in commissions for himself and his firm. Due to these alleged actions, he was barred by FINRA from acting as a securities broker in any fashion.

Non-Traditional ETFs

ETFs, or Exchange Traded Funds, are securities that follows a particular index. The fund directly mirrors that index and adjusts identically to whatever it adjusts to. For example, if the value of the index has increased 1 percent, the ETF will as well.

Leveraged, and inverse, ETFs operate differently. These products utilize derivatives, like options and futures, to increase gains. For instance, if the value of an index that a leveraged ETF is mirroring increases by 1 percent, the leveraged ETF could increase as much as 2 or 3 percent.

These multiplied gains can also work to the customer’s dismay should the index move in the opposite direction they wanted. If the value of an index decreases in a leveraged ETF, or increases in an inverse ETF, then the customer’s losses are multiplied to the same level that their gains would have been.

Non-traditional ETFs are also only suitable for short-term trading. They are actually meant to be purchased and then sold within a single trading day. This is because non-traditional ETFs are rebalanced daily. Because of this, profits are determined just by daily growth. If an investor holds onto a leveraged ETF for a long period of time it can often result in detrimental losses even if the index it is mirroring has increased in value since the leveraged ETF was purchased.

Jay Dee Jordan allegedly had his customers in a “buy and hold” strategy with their non-traditional ETFs. This is the main reason they experienced such high losses.

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 Jay Dee Jordan, please contact Oakes & Fosher for a free and private consultation.