Raymond James Financial Advisor, Joseph Esposito, Has Two Customer Complaints, Alleging Sales Practice Violations
Joseph J Esposito is a Financial Advisor at Raymond James Financial Services, Inc. in Scranton, PA. Joseph Esposito has been in the securities industry since 1979 and previously worked at Wells Fargo Advisors, LLC, Prudential Securities Incorporated and Thomson McKinnon Securities, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Joseph Esposito has two customer complaint disclosures on his CRD, alleging the following sales practice violations:
- June 2017 – “Claimants allege that between 2008 and 2016 that their accounts were excessively traded and that many of the securities recommended to them were unsuitable.” The matter settled for $125,000.
- October 1998 – “CLIENT ALLEGES “TRANSACTIONS MADE WHICH I HAVE NOT AUTHORIZED” AT PSI. CLIENT FURTHER ALLEGES THAT CERTAIN INVESTMENTS IN HER ACCOUNT ARE NOT “SUITED FOR AN INVESTOR WITH MODERATE RISK.”
For a copy of Joseph Esposito’s CRD, click https://brokercheck.finra.org/individual/summary/860964#disclosuresSection
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
Part of the suitability analysis requires that the trading activity be quantitatively suitable. Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.
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