A Texas couple got some great news last week from the FINRA arbitration panel that ruled on their claim.
The panel ruled that the Raymond James Financial Inc. and broker Larry Milton must buy back some $925,000 worth of auction rate securities from a the couple.
Rex and Sherese Glendenning alleged breach of fiduciary duty, misrepresentation and civil fraud, among other allegations. According to their attorney the couple opened a Raymond James account to consolidate fund that were held in numerous CODs in an effort to make their finances easier to manage. That is not what they ended up getting.
The suit claimed that the Glendenning's broker, Mr. Milton, purchased auction rate securities on behalf of the couple although they had never discussed these purchases and expressed their desire to invest in CDs.
The couple found themselves at the heart of the auction rate securities debacle when the market froze in February of 2008 leaving them with no way to access their investments.
It has been a rough couple of months for Raymond James. This is the second time in as many months that the company has been ordered to buy back auction rate securities from investors. In July they were ordered to buy back $2.5 million from a client who was acting as a trustee for a revocable trust.