EDJ Really Pays LOL

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Apr 30, 2007 6:04 pm

Wooo Hooo.  Just got my $12.94 check from EDJ for the SEC settlement.       I'll try not to spend it all in one place.


Apr 30, 2007 8:32 pm

Put in in ICA, and in 10 years you will have like a gajillion dollars.

Apr 30, 2007 10:07 pm
babbling looney:

Wooo Hooo.  Just got my $12.94 check from EDJ for the SEC settlement.       I'll try not to spend it all in one place.




You can get a dime of crack and a pack of smokes with that.

May 1, 2007 10:21 am

This Fair Fund distribution is truly a joke.  I've had 3 clients bring me checks, the biggest is just over $100 and it was for a $500K account.  That just made his day!! He's so happy he left EDJ when I did!!!  And to think, they made such a big deal about how they were doing right by their clients.  How much $$ has gone into Dougy's and Jimmy's pockets from the non-disclosed revenue sharing?  probably a bit more than $100.


All you EDJ folks should really explain that the checks or deposits your clients are getting is a very small percentage of the revenue generated from the kick backs from the fund family's of the funds you sold them.  Tell them that the GPs have kept millions each year but they wqanted to appease the SEC so they sent your clients a check for $20.00!!


I doubt that story will ever be told.

May 1, 2007 1:25 pm

Is there a letter explaining why they received a check?


What are boy's/girls in the cult being told to tell the cleints about this checks?


I realize most of the Jones reps do not understand what happened so Jones has to spoon feed them a story. I wounder what it is?  

May 1, 2007 5:53 pm

You'd be right...about 90% of the salesforce wasn't there when the sh*t hit the fan....So they will spew the company line...also ..remember the average EDJ client doesn't read...remember..Dougy...

May 1, 2007 7:42 pm

Can anyone from EJ let us know what the talking points are on this issue?


I just tell my clients the I got this for them by blowing the whistle on old EJ.

May 1, 2007 7:58 pm

I have had several of my clients who came with me from Jones come in today with the checks.  I laugh and show them mine too.


My explanation: 


EDJ had/has several preferred fund families. This means that the company did a lot of business with them compared to other companies.  In exchange, the funds paid Jones (the company) extra compensation for preferential treatment.  I (the rep) didn't get anything extra, but the company did.  It is just like at the grocery store where the cereal that is placed at eye level instead of down at your ankles is getting preferred placement.  The cereal companies pay Safeway more for being in a better location.


It didn't matter to me about being a preferred fund. I would have invested you in this fund in anycase, because I think it is/has been a good investment for you and I always try to get the best fit for you in your portfolio.  (Client agrees, since they have made money) 


The big problem is that Jones was not making proper disclosures about this arrangement and they got sued.  As a result there was a big settlement and (pointing to my 12.94 check) this is the award.   Some people got more or less depending on how much they had invested in the funds. 


You know who really made out here?  The lawyers


One of my clients today got 10.00.  We decided to pool our money and go to lunch tomorrow.

May 2, 2007 11:56 am

Mr. Looney,


That's what I tell them too but I'd like to hear from a Jones guy on what they are saying...this should be good...come on Spaceman...give us the scoop.

May 2, 2007 1:34 pm

I know nothing about this case, but when I've been with companies involved with class action suits, the reps have always been instructed to say absolutely nothing and direct the clients to an 800 #.

May 2, 2007 3:55 pm

Current Jones clients are not receiving checks.  They are receiving a few discounted trades going forward.  Whatever the discounted amount is, it has to be used over three years.  Can you imagine explaining to a client that his $30 discount has to be used at $10 per year for the next three years.  Wow, what a deal for the client!

May 7, 2007 5:09 pm

Um, wrong.  All clients who were a part of this deal are getting either checks in the mail or deposits into their accounts. This is the money coming from the fine we got back in 2004 for $75 mil.  There is a settlement out there for a class action suit that is going through the legal systems.  That's the one we can't talk about and that may be using the voucher system.   


I think it's funny that this is costing you guys so much time.  I think I've answered maybe 3 phone calls about it. 


BTW, there aren't any outlined talking points on our system that I can find.  So, we're winging it just like you guys are.  Evidently not as often though.       

May 7, 2007 5:27 pm
Spaceman Spiff:

I think it's funny that this is costing you guys so much time.  I think I've answered maybe 3 phone calls about it. 


Spiff, unless you briefed all your clients beforehand, there's something wrong with this picture.  I've gotten three phone calls and I think it's safe to say that I don't have a small fraction of the Jones clients that you do...what gives?

May 7, 2007 9:11 pm

We've gotton about 5 calls. And I work in a 2-broker office with a

segment 5 broker.



Most of our clients could care less about a $10 check. They just cash it

and move on.

May 7, 2007 9:14 pm
Indyone:
Spaceman Spiff:

I think it's funny that this is costing you guys so much time.  I think I've answered maybe 3 phone calls about it. 


Spiff, unless you briefed all your clients beforehand, there's something wrong with this picture.  I've gotten three phone calls and I think it's safe to say that I don't have a small fraction of the Jones clients that you do...what gives?



They are getting deposits into their accounts and won't know about it until they get their next statements....if they even bother to look at the statment.  Spiff won't be getting any calls until then.

May 8, 2007 10:51 am

They all got their statements.  Still, no calls.  Jones did send out letters with their statements, so maybe they're just reading the letters.  Who knows.  It's really been a non issue though.

May 8, 2007 1:08 pm

Getting a $14 check in the mail from a company that you left a year ago is a LOT different than having a $14 credit on page 6 of your last statement.

May 8, 2007 4:50 pm

Agreed.  Maybe that's why you're getting more questions than the avg Jones guy.

May 8, 2007 5:49 pm
Spaceman Spiff:

Agreed.  Maybe that's why you're getting more questions than the avg Jones guy.


Spiff,


I must tell you that it is refreshing to hear logic coming from a current EJ guy...thank you.  I do agree with Indy because the current EJ clients don't have to DO anything where as my clients must deposit the often 2 or 3 checks they get in the correct acct. 


I'd still like to hear what you tell the clients.


BTW...you sound like a guy who would do great in the Indy world...let me know if I can help...it's easier than you think.

May 9, 2007 10:16 am

Yeah, I probably would do well in the indy world.  But, I like Jones. 


I tell my clients that they are getting the check because the regulators finally figured out how to tell us how to split up the $75 million that we got fined a few years ago.  Most of the time they don't remember what we got fined for, so I have to remind them that it was the revenue sharing.  Then they don't remember what that is, so I tell them that we have preferred mutual fund vendors that help sponsor events, educate FAs, make sure I'm up to speed on what's going on with their funds, etc.  They pay Jones some of the profits they generate to buy shelf space.  Like Ralston Purina pays for shelf space at Wal-Mart to put it's dog food at your eye level.  That's pretty much where the conversation ends. 


I do remind them that it has nothing to do with their performance, but it does create a conflict of interest at our firm or at any other firm that partcipates in revenue sharing agreements. 


I've not seen any talking points on our system.  Maybe I haven't looked hard enough.  It's just not a big enough issue (the checks I mean).