Former Stifel, Nicolaus & Company, Inc. Client Wins FINRA Arbitration for Energy Sector Losses

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In October 2017, a former client of Stifel, Nicolaus & Company, Inc. won an award in a FINRA arbitration for compensatory damages for $90,000 for losses sustained from investments in the high risk energy sector and other investments. The investors were clients of financial advisor Audie Gean Rea (CRD# 1080152).

The customer sought $307,061.49 in damages and the case was settled for $90,000. The causes of action included breach of fiduciary duty; negligence; suitability; churning; overconcentration; failure to supervise; and violation of FINRA Rules 2010, 3010 and Article V, Section 3 FINRA By-Laws. The causes of action relate to Claimants investments in, among others, the following stocks:

  • Allegheny Technologies, Inc.
  • Freeport McMoran, Inc.
  • Arch Coal
  • Peabody Energy Corp. Vale SA ADR
  • iShares MSCI Brazil Capped ETF
  • Oncogenex Pharmaceuticals

The FINRA arbitration hearing was conducted in Atlanta, Georgia.

Rea has been registered with Stifel, Nicolaus & Company, Inc. in Ridgeland, Missouri since. Rea has also been the subject of two additional customer complaints between 1989 and 2016, according to his CRD report, one of which was closed without action:

September 1989. “Customer alleged excessive commissions and he did not authorize trade and claimed 138,000 in damages.” The customer sought $138,000 in damages and the case was settled for $20,000.

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, Stifel, Nicolaus & Company, Inc. may be liable for investment or other losses suffered by Rea’s customers.

Erez Law represents investors in the United States for claims against Stifel, Nicolaus & Company, Inc. regarding losses sustained from investments in the high risk energy sector and other investments. If you were a client of Stifel, Nicolaus & Company, Inc. or another firm, 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.

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Author: Jeffrey Erez

The founder of Erez Law, Jeffrey Erez, focuses exclusively on securities arbitration and litigation. Mr. Erez passionately believes in representing aggrieved investors and obtaining justice for his clients through litigation.