The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Paul Alexander Jr. According to his publicly available FINRA BrokerCheck report, Paul Alexander Jr. has been the subject of multiple customer disputes.
Paul Alexander Jr. was a Florida based securities broker. He worked in the securities industry for fourteen years. During his career, he was registered with three different securities firms. He is no longer working as a registered securities broker in any fashion.
His Registrations
- A.G. Edwards & Sons (2000-2001)
- Merrill Lynch (2001-2009)
- Raymond James (2009-2015)
The Allegations
- In July 2013, a customer alleged that Paul Alexander Jr. recommended unsuitable investments, breached regulatory requirements, breached his fiduciary duty, managed their account negligently, executed unauthorized trades. This case was settled for $57,500 in damages.
- In March 2014, a customer alleged that Paul Alexander Jr. recommended unsuitable investments, over-concentrated their investments, excessively traded their account, engaged in an unauthorized use of discretion, engaged in common law fraud, and violated the North Carolina Securities Act. This case was settled for $250,000 in damages.
- In December 2014, a customer alleged that Paul Alexander Jr. managed their account negligently, breached contract, breached his fiduciary duty, violated FINRA conduct rules, recommended unsuitable investments, and made material misrepresentations and omissions. This case was settled for $36,000 in damages.
- In September 2015, a customer alleged that Paul Alexander Jr. traded their account without authorization. This case was settled for $95,000 in damages.
- In November 2016, Paul Alexander Jr. was officially sanctioned by FINRA. The findings in this matter state that he exercised discretion in customer accounts without prior written authorization from the customers or by having his member firm accept the accounts as discretionary. Due to these alleged actions, he was fined $5,000 and suspended from acting as a securities broker in any fashion for a period of twenty business days.
What Does This Mean?
Securities brokers are prohibited from executing trades on behalf of investors without first obtaining the investor’s authorization. There is however a practice known as discretionary trading that allows a securities broker to execute trades in a client’s account without obtaining authorization for each one, but the broker must first obtain written authorization from the investor first. This written authorization is necessary as it keeps the investor involved in the process and helps protect them against potential unsuitable investments made without their knowledge.
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 Paul Alexander Jr., 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.
