- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2022-09-23T14:32:00
A broker-dealer unit of Raymond James Financial agreed to pay $500,000 as part of a settlement with the Securities and Exchange Commission (SEC) for alleged supervisory failures that included the input of a misinformed compliance officer.
Raymond James & Associates did not clearly communicate to compliance and supervisory staff procedures regarding a group the business formed to help protect senior and at-risk clients, resulting in a compliance officer misunderstanding the purpose of the group’s investigations, the SEC alleged in its order. As a result, activities by a former registered representative at the firm, Frederick Stow, who was misappropriating funds from two elderly customers’ accounts were allowed to continue, according to the agency.
Stow, who eventually admitted his misconduct, was sentenced to five years in prison by the Department of Justice in May 2021 after pleading guilty to securities fraud, wire fraud, and aggravated identity theft.
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Raymond James & Associates and its subsidiary agreed to pay more than $1.9 million to settle allegations levied by the Financial Industry Regulatory Authority that it didn’t have an effective system to handle customer complaints, along with millions of direct mutual fund transactions not reasonably being supervised.
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