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.