Erez Law is currently investigating Cetera Advisors LLC financial advisor James Christopher Hayne (CRD# 3257845) regarding a large list of allegation, including unsuitable recommendations, failure to diversify, excessive commissions, excessive trading, unauthorized trading, fraud, negligence, breach of contract, and failure to supervise, among many other allegations. Hayne has been registered with Cetera Advisors in Mansfield, Texas since 2014
Hayne has been the subject of eight customer complaints between 2002 and 2016, according to his CRD report:
- December 2016. “Unsuitable investments, failure to diversify, excessive trading, fraud, and breach of fiduciary duty.” The customer is seeking $500,000 in damages and the case is currently pending.
- December 2016. “Portfolio decline.” The customer sought $200,000 in damages and the case was settled for $10,000.
- February 2016. “Alleged failure to execute, breach of fiduciary duty, negligence, breach of contract, fraud, misrepresentation, failure to supervise, negligent hiring, violations of state securities laws, NYSE and FINRA rules in the trading activity in an individual account from 09/24/2013 – 06/03/2014.” The customer sought $200,000 in damages and the case was settled for $10,000.
- October 2015. “Claimant alleges that, between 2008 and 2013, excessive trading occurred in Claimant’s family trust account. Claimant alleges the investments were unsuitable given his age, health condition, and investment objectives. On the basis of these allegations, claimant alleges breach of fiduciary duty, fraud, breach of contract, negligence and failure to supervise.” The customer seeks $750,000 in damages.
- August 2014. “Client alleges unauthorized trading, excessive commissions, and poor performance from 2008 to 2012.” The customer sought $141,739.71 in damages and the case was denied.
- October 2008. “9/1/07-10/13/08; The clients were encouraged to take out a margin loan to enable them to pay down their home loan balance. The clients also stated that the FA suggested that they invest the proceeds from their home sale in mutual funds. The value of these funds have declined significantly during the past eighteen months.” The customer sought $5,000 in damages and the case was denied.
- November 2007. “The client was referred to to a local mortgage company to refinance his home. Previously, the client had a 30 year fixed rate of 5.625% on a principal balance of $124,840.00. When he refinanced, the new principal balance was $260,000.00 on a 30 year note at 7.375%. The new loan included an adjustable rate rider, negative amortization and a prepayment penalty addendum. When the client refinanced his home, he brought $125,000.00 into the Edward Jones’ office, which was subsequently (SP) invested in mutual funds. The client is now questioning the suitability of refinancing (SP) his home and investing these funds in mutual funds. The client also incurred closing costs of $6300.00 on the new loan.” The customer sought $5,000 in damages and the case was denied.
- October 2002. “Previous firm complaint: from June 2001 to May 2002 customer alleges Hayne purchased securities without customer’s knowledge and approval on margin. The customer sought $82,000 in damages and the case was denied.
Additionally, Hayne has a tax lien on his record from July 2015.
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, Cetera Advisors LLC may be liable for investment or other losses suffered by Hayne’s customers.
Erez Law represents investors in the United States for claims against Cetera Advisors LLC financial advisor James Christopher Hayne. If you were a client of Cetera Advisors LLC financial 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.