Were you the victim of former J.P. Morgan Securities LLC broker Steven Foote (CRD# 1158497)? Foote was registered with J.P. Morgan Securities LLC in New York, New York from 2015 to 2019.
Foote has been the subject of one customer complaint, from September 2020. According to his CRD report, “Claimants alleges exercise of discretion and unsuitable investments. Activity dates August 2016 – July 2020.” The customer is seeking $11.3 million in damages and the case is currently pending.
The complaint is regarding a highly speculative trading investment strategy in highly leveraged margin accounts, including “junk” bonds, foreign bonds, preferred stocks, foreign currencies, exchange traded funds (ETFs), and master limited partnerships (MLPs), as well as unsuitable investments in the energy sector including unregistered Nine Energy Senior Notes. The claimants saw substantial losses when the market collapsed due to the Covid-19 global pandemic in March 2020. Regrettably for the client, it is alleges that Foote and J.P. Morgan ratcheted up the margin balances to over $7.1 million by the end of August 2017. The accounts were over-leveraged and over-concentrated.
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, J.P. Morgan Securities LLC may be liable for investment or other losses suffered by Foote’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you 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.