The law firm of Oakes & Fosher is currently investigating the alleged misconduct of securities broker Jeffrey Labelle. According to his publicly available FINRA BrokerCheck report, Jeffrey Labelle had been the subject of multiple customer disputes over the course of his career.
Jeffrey Labelle was a Florida-based securities broker who worked in the securities industry for thirty years. During his career, he was registered with fifteen different securities firms.
- Dean Witter Reynolds (1987-1990/1991-1991)
- Merrill Lynch, Pierce, Fenner & Smith (1989-1991)
- Painwebber Incorporated (1992-1993)
- Omni Financial Securities (1993-1995)
- WMA Securities (1996-1997)
- Legacy Financial Services (1997-1999)
- Morgan Keenan & Company (1999-2002)
- Intersecurities (2002-2004)
- Sentra Securities Corporation (2004-2005)
- Sii Investments (2005-2007)
- Next Financial Group (2007-2010)
- Woodbury Financial Services (2009-2012)
- First Allied Securities (2012-2018)
- LPL Financial (2018-2019)
- In February 2010, customers alleged that Jeffrey Labelle had breached his fiduciary duty, recommended unsuitable investments, and made material misrepresentations in the sale of private REITs and private preferred stock of an oil and gas corporation. This case was settled for $62,000 in damages.
- In April 2019, a customer alleged that Labelle had recommended unsuitable investments, breached his fiduciary duty, and managed his account negligently. This case was settled for $25,000 in damages.
- In February 2020, a customer alleged that Labelle had recommended unsuitable investments, breached his fiduciary duty, and managed her account negligently. This case was settled for $60,000 in damages.
- In April 2020, a customer alleged that Labelle had breached his fiduciary duty, violated FINRA rules, and managed their account negligently. This case is currently pending, and the customer is seeking $300,000 in damages.
- In July 2020, a customer alleged that Labelle had recommended unsuitable investments. The customer further alleged fraud, failure of supervise, negligence and a breach of fiduciary duty. This case was settled for $76,200 in damages.
- Since November 2020, 11 customer disputes have been filed against Labelle, alleging unsuitability, failure to supervise, breach of contract, negligence, and overconcentration of customers’ accounts in alternative investments. 10 of these cases are currently pending, and the customers are seeking up to $300,000 in damages.
What Does This Mean?
Securities brokers have a duty to their customers to always act in their best financial interests. This means that brokers can only recommend investments that are suitable for their customers. Brokers like Jeffrey Labelle are required to use diligence to discover the different factors relevant to determine whether an investment is suitable for a customer. These factors include the customer’s investment objectives, financial situation, liquidity needs, and risk tolerance. Brokers who recommend investments to their customers that are contrary to these needs may be acting in a fraudulent manner and placing their own interests ahead of those of the customer. If not rising to this level, the broker is at least negligent by not recommending appropriate investments. Regardless, if the broker’s intent was to defraud the client or he merely was negligent, making unsuitable recommendations is a violation of a broker’s duty and industry rules and regulations.
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 due to this fraud or negligence 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 Jeffrey Labelle, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.