JP Morgan Ordered To Pay Client $4 million for Edward Turley’s Misdeeds
Published On: January 13, 2022
Chicago-based Stoltmann Law Offices represents investors who’ve suffered losses from dealing with broker-advisors who’ve placed clients in unsuitable investments.
FINRA, the federal securities regulator, has ordered JP Morgan to pay an investor $4 million for “unsuitable securities — including high-risk equities and junk bonds –without authorization,” according to Advisorhub.com. The JPM client also alleged a JP Morgan broker had “used leverage to increase the bets in her portfolio, including high-risk foreign currency positions.”
The broker on the accounts appears to be Edward L. Turley, Advisorhub reported. Morgan fired Turley, a “star” broker who reportedly generated as much as $30 million in revenue on $1.6 billion in assets, in August. He has $57 million in pending damage claims from four customer complaints on his record tied to losses sustained in last year’s pandemic-triggered market crash, excluding the award in the most recent case.
According to Advisorhub, Turley began his brokerage career in 1988 at Morgan Stanley, where he remained until 1991, and joined Credit Suisse First Boston the following year, according to his BrokerCheck. He left First Boston in 1995 for a 10-year stint at Lehman Brothers, but was not registered with a FINRA member firm between his 2005 exit from Lehman and his 2009 move to J.P. Morgan, according to the database.
The only other disclosure prior to 2020 on Turley’s record was a 1999 claim for $49,000 over alleged misrepresentation of investment products that was denied. A J.P. Morgan spokeswoman declined to comment on the arbitration outcome or underlying dispute.
Note: Brokers are not allowed to trade without your explicit written permission unless you give them “discretionary” authority over your account, which often opens the door to overtrading and other abuses. They also must carefully vet all trades and investments with you to ensure that the vehicles they are selling meet your financial goals and risk tolerance. The must also receive your written permission to use “leveraged” investment strategies, which employ greater risk and potential for loss. If you choose to take on more risk, they must explain in clear detail the downside of such an investment.
Firms are legally required by FINRA to monitor and supervise what their brokers are selling – their investments must be vetted and authorized by the firms – and have an obligation to investors to fully reveal true risk and return information about the investments they recommend. Broker-dealers and advisors are also required to fully vet all of the investments they are selling to determine if they are suitable for your age and risk tolerance. Investors can file FINRA arbitration complaints if these rules are broken. You can often avoid rogue broker-advisors by checking their backgrounds through FINRA BrokerCheck,
If you invested with a broker-advisor and lost money as a result, you may have a claim to pursue through FINRA Arbitration. Please contact Stoltmann Law Offices, P.C. at 312-332-4200 for a free, no obligation consultation with a securities attorney. Stoltmann Law Offices is a contingency fee law firm which means we do not get paid until you do!
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