Client complaints DENIED!

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Mar 31, 2009 5:02 pm

Hey just thought I'd share. I left Edward Jones last year, and suddenly, in December received not one, but two client complaints (I later found out that the broker who took over my office encouraged them to complain). Both complainants were denied recompense from Edward Jones and so took their cases to FINRA.



I got letters from both Jones and FINRA informing me of the investigation. I gathered all of the old emails and material I had. I had documented the phone conversations and had also kept the phone records meticulous. One guy said that I traded his account without him knowing, and so I showed not only the date the phone call was made, but also the length of the phone call.



I also, sent a copy of emails where he said he was happy with his portfolio just one week before I left Jones. As for the other client, everything was documented in the notes section. Both of the complaints were DENIED by FINRA.



Now, look at that. I saved Jones some money, so you LPs owe me about .0001 cents or something like that. I accept checks.





Mar 31, 2009 5:08 pm

I'll put a check in the mail to you tomorrow.  I'm sure the bank will cash a check signed Spaceman Spiff.

 



Just out of curiosity how did you find out the new FA had encouraged the client to file the complaint? 
Mar 31, 2009 5:15 pm

He told a friend I still had at Jones (my last one - all of the others have left).



Banks will probably accept checks from anybody now a days - they need the money.



Mar 31, 2009 6:07 pm

Nice record keeping. That's a really good lesson for us newbies.

Mar 31, 2009 6:28 pm
Moraen:

Hey just thought I'd share. I left Edward Jones last year, and suddenly, in December received not one, but two client complaints (I later found out that the broker who took over my office encouraged them to complain). Both complainants were denied recompense from Edward Jones and so took their cases to FINRA.



I got letters from both Jones and FINRA informing me of the investigation. I gathered all of the old emails and material I had. I had documented the phone conversations and had also kept the phone records meticulous. One guy said that I traded his account without him knowing, and so I showed not only the date the phone call was made, but also the length of the phone call.



I also, sent a copy of emails where he said he was happy with his portfolio just one week before I left Jones. As for the other client, everything was documented in the notes section. Both of the complaints were DENIED by FINRA.



Now, look at that. I saved Jones some money, so you LPs owe me about .0001 cents or something like that. I accept checks.







I guess there is a bright side to not opening accounts over $5,000.

Mar 31, 2009 10:27 pm

Head A*s A______ In Charge?

 
What's the other 'A' stand for?
Apr 1, 2009 11:57 am

Actually, one was 700k, the other 400k.

Apr 1, 2009 12:54 pm
deekay:

Head A*s A______ In Charge?

 
What's the other 'A' stand for?
 
Nevermind, I figured it out.  Clever.
Apr 25, 2009 9:12 am

Holy hell- did you just admit to FINRA and your old firm that you retained emails and phone logs with client info on them when you transitioned to a new firm?

Get a lawyer.

Apr 25, 2009 9:25 am

i echo Wasabi's question - curious about that.
Also, are you saying the guy complained to FINRA and they denied his complaint summarily or did they go to arbitration and you won?

Apr 25, 2009 8:09 pm

This brings up a very good point.  When someone leaves their broker/dealer, how can they ever attempt to defend themselves if they leave all their records with the old B/D?

Apr 27, 2009 3:28 pm

The short answer?

They can't- they are forced to rely on pre-existant notes at the former BD. This is why it's critical to make and KEEP detailed notes in a file.

If the notes are in the client file, the file will be kept after a broker leaves.

Typically there is a form of sharing between the former firm and the FA.

Honor among thieves, and all that.


May 1, 2009 1:09 pm

since the OP hasn't replied to my question, it's obvious that the FINRA ninjas have dropped from the ceiling, and have thrown him in FPMITA prison for retaining notes after leaving a firm.

Sorry to lose you, OP.


Aug 19, 2009 1:25 am

It's doubtful that notes you kept without sensitive information (SSN, DOB etc) would get you in trouble. Get a lawyer if you don't keep all those notes...

Aug 19, 2009 11:40 am

Wow, someone brought this back up.



I admit to actually having personal emails from the client about business stuff. I had no client files other than what they sent me after I left. Both clients at one point spoke about transferring over. (BTW - I sent all of these to FINRA, and they had no problem with it).



The one that complained to FINRA first, called me several times AFTER I left as well.



I did NOT have sensitive information (SSN, DOB, etc.) except what the clients gave me AFTER I left. I certainly was not going to trust Jones to bail me out. I kept records of all contacts made between myself and the clients. What was talked about, etc. I had no statements, Edward Jones documents, nothing like that.



FINRA had no problem with it.





Aug 19, 2009 11:45 am
Sportsfreakbob:

i echo Wasabi's question - curious about that.Also, are you saying the guy complained to FINRA and they denied his complaint summarily or did they go to arbitration and you won?





Bob - complaint was denied summarily. No arb.

Aug 19, 2009 6:24 pm
Moraen:


Bob - complaint was denied summarily. No arb.



Very cool!
I left my firm some months ago and also took notes on a client who complained. My former firm offered him a few bucks to go away. He turned it down. The firm told me that with my notes, and the emails that he sent to me which incriminated himself, the guy has no case so they werent going to offer him any more money.
He then went to FINRA and complained, just sent a letter, didnt file a formal complaint. FINRA actually opened an investigation and found that there was no basis for taking action against me. They sent him a letter and copied me, where they stated this, but also stated to him that if he feels he is due monetary damages he has the right to file for arb. They also said that it would be "against fair principles" for me to use their decision against him in an arb.
I guess thats a form letter, but still, how perverse.
Now i have to hold my breath for another few months.
I know i will win if it goes to arb, but who needs the hassle or expense. If it does, i am gonna file a bigass counterclaim against him. There is a way to do that, i have been told.

Aug 19, 2009 8:44 pm
Sportsfreakbob:
Moraen:


Bob - complaint was denied summarily. No arb.



Very cool!
I left my firm some months ago and also took notes on a client who complained. My former firm offered him a few bucks to go away. He turned it down. The firm told me that with my notes, and the emails that he sent to me which incriminated himself, the guy has no case so they werent going to offer him any more money.
He then went to FINRA and complained, just sent a letter, didnt file a formal complaint. FINRA actually opened an investigation and found that there was no basis for taking action against me. They sent him a letter and copied me, where they stated this, but also stated to him that if he feels he is due monetary damages he has the right to file for arb. They also said that it would be "against fair principles" for me to use their decision against him in an arb.
I guess thats a form letter, but still, how perverse.
Now i have to hold my breath for another few months.
I know i will win if it goes to arb, but who needs the hassle or expense. If it does, i am gonna file a bigass counterclaim against him. There is a way to do that, i have been told.



How are you going to afford those attorney fees if you can't afford an assistant?  Serious question.  I hope the dude never pops his head up.

Aug 19, 2009 8:55 pm
voltmoie:


How are you going to afford those attorney fees if you can't afford an assistant?  Serious question.  I hope the dude never pops his head up.



Serious answer - never took the position i cant afford an assistant, just took the position that i dont think the cash flow in the business right now justifies hiring one (if i did take that position, i did not communicate properly).
I hope he never shows up either, but if i does, ya do what you gotta do!

P.S. You have a good memory for these boards