Barred Broker Alert: Former WFG investments, Inc. Financial Advisor Jay Jordan
Posted on Thursday, November 16th, 2017 at 12:46 pm
Erez Law is currently investigating former WFG Investments, Inc. financial advisor Jay Jordan (CRD# 1776666) regarding unsuitable purchases of non-traditional ETFs. Jordan has been registered with WFG Investments, Inc. in Oklahoma City, Oklahoma from 2005 to April 2016 when he was terminated regarding, “ WFG investments, Inc. (“WFG) has reasonably concluded the representative failed to follow certain policies of WFG, including: failure to report a customer complaint, attempting to settle a customer complaint, unauthorized use of a personal email address to communicate with a customer, and mischaracterizing aspects of an outside business activity.”
In August 2017, FINRA barred Jordan after he consented to the sanction and to the entry of findings that he recommended and executed hundreds of unsuitable purchases of non-traditional ETFs in his customers’ accounts. According to the FINRA findings, Jordan failed to use reasonable diligence to obtain knowledge regarding these highly sophisticated products before recommending them to his customers. The investigation found that Jordan recommended his clients purchase more than $22 million in non-traditional ETFs. Additionally, Jordan failed to sell these products on the same day he purchased them, and he failed to conduct a daily analysis to determine whether it was appropriate to hold the products for an extended period of time. Jordan routinely used a long-term buy-and-hold strategy that was unsuitable for his clients, and this strategy resulted in realized and unrealized losses of more than $8.4 million for positions held for more than 30 days. Jordan and WFG Investments, Inc. received gross commissions of $810,000 from these non-traditional EFT transactions. The investigation also found that Jordan received two customer complaints, and he tried to settle one complaint away from WFG Investments, Inc. using his personal email account.
Jordan has been the subject of 14 customer complaints between 1995 and 2017, according to his CRD report:
March 2017. “Claimants allege unsuitable recommendations. Activity is deemed to have occurred in 2011 through 2016.” The customer is seeking $750,000 in damages and the case is currently pending.
March 2017. “Claimants allege unsuitable recommendations. Claimants also allege inadequate supervision related to claimants purchasing an unapproved real estate investment offered by the representative.” The customer is seeking $3,800,000 in damages and the case is currently pending.
March 2017. “Claimant alleges unsuitable investments.” The customer is seeking $900,000 in damages and the case is currently pending.
March 2017. “Claimant alleges unsuitable investments.” The customer is seeking $4,000,000 in damages and the case is currently pending.
December 2016. “Claimant alleges unsuitable investments.” The customer is seeking $88,000 in damages and the case is currently pending.
December 2016. “Claimants allege unsuitable investments and failure to disclose material facts.” The customer is seeking $83,484.68 in damages and the case is currently pending.
November 2016. “Claimants allege unsuitable recommendations and inadequate supervision.” The case is currently pending.
July 2016. “Customers allege the representative purchased an unsuitable investment without authorization.” The customer is seeking $42,000 in damages and the case is currently pending.
April 2016. “Claimant alleges failure to follow instruction to limit losses and failure to implement and monitor investment strategy.” The customer is seeking $90,000 in damages and the case is currently pending.
July 2015. “Customer alleges unauthorized trading from 6/30/2011 to present.” The customer is seeking $164,644.83 in damages and the case is currently pending.
November 2002. “Client alleges Mr. Jordan and his partner made unsuitable and unauthorized trades in her portfolio. Client seeks $500,000 in damages but does not specify the amount of alleged compensatory loss.” The case was settled for $160,000.
July 2002. “Clients allege Mr. Jordan made unsuitable recommendations and engaged in unauthorized trades in their investment accounts.” The customer sought $1,125,000 and the case was settled for $500,000.
June 2001. “Attorney wrote on behalf of client seeking opportunity to discuss the account, did not at that time specify claims or allegations, during phone conversation attorney alleged unsuitable and excessive tracking in the account, resulting in losses of 400,000.00.” The case was settled for $86,500.
June 1995. “Suitability; misrepresentation, brch of fiduciary dt; churning.” The customer sought $40,000 in damages and the case was settled for $175,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, WFG investments, Inc. may be liable for investment or other losses suffered by Jordan’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.