Oakes & Fosher is presently investigating the possible misconduct of securities broker Jeffrey Paul Davis. According to his publicly available FINRA BrokerCheck report, Jeffrey Paul Davis has been the subject of a FINRA sanction.

Jeffrey Paul Davis is presently operating as a Connecticut based securities broker. He has worked in the securities industry for twenty-four years. During his career, he has been registered with six different securities firms.

His Registrations

  • Metropolitan Life Insurance Company (1994-1995)
  • MetLife Securities (1994-1995)
  • Invest Financial Corporation (1995-2000)
  • National Planning Corporation (2000-2001)
  • Harvest Capital (2001-2013)
  • Kovack Securities (2013-Present)

The Allegations

In April 2017, Jeffrey Paul Davis was officially sanctioned by FINRA. The findings in this matter state that he over-concentrated the accounts of multiple customers in illiquid non-traded REITs. According to FINRA’s findings, this over-concentration was incredibly unsuitable given the customers’ investment objectives, liquidity needs, risk tolerances, and financial situations. Due to his alleged actions, he was fined $5,000 and suspended from acting as a securities broker in any fashion for a period of one month.

Non-Traded REITs

Non-traded REITs, also known as real estate investment trusts, are privately traded securities not sold on any public securities exchanges. Because of this, there is a distinct lack of oversight for these products. Many less than scrupulous securities brokers use this lack of over-sight to their advantage when pitching these products to unsuspecting customers. This is because it allows them to misrepresent non-traded REITs as safe, liquid, and consistently lucrative–when nothing could be further from the truth.

There is also almost always a significant conflict of interest with brokers and these products due to the substantial commissions they receive when the transactions are executed. Broker commissions for these products can be as high as ten percent of the investor’s principal. These outrageous commissions compounded with other upfront fees can drain an investor’s principal of as much as 17 percent before any money is actually put toward the investment. This often prevents investors from seeing any investment returns under anything besides booming market conditions.

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 Jeffrey Paul Davis, 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.