What Did Your Brokerage Firm or Investment Adviser Do Wrong With GWG
Published On: July 7, 2015

Stoltmann Law Offices is investigating Jeffrey D. Daggett, who entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA). According to his AWC, Daggett recommended unsuitable transactions in an Exchange Traded Note (ETN) and leveraged and inverse leveraged Exchange Traded Funds (ETFs), in customer accounts. Recommending unsuitable funds for customers is against FINRA conduct rules. An exchange-traded note is a senior, unsecured debt security issued by an underwriting bank. They are backed only by the credit of the issuer and are based on the performance of a market index. It is a type of security that combines bonds and ETFs. These can be volatile and speculative securities, and risky.

Jeffrey D. Daggett was registered with Wells Fargo Advisors in Temecula, California, at the time of the accusations against him. Allegedly, from March 2010 until September 2011, Daggett recommended and traded ETN and non-traditional ETFs in the account of one of his customers. These accounts were concentrated in inverse triple leveraged ETFs, a speculative ETN and a triple leveraged ETF. The concentrations of securities were not consistent with the customer’s investment objectives, as he had objectives of moderate growth and income for his portfolio. The non-traditional ETNs Daggett put the client in were intended for short-term trading, and the client desired long-term trading strategies and steady growth. Even though the ETNs were meant to be held for a period of a day, Daggett held them for one month to two years. Because Daggett violated FINRA rules, he was suspended from the industry for four months and fined $20,000.

Daggett was also registered with E.F. Hutton & Company from September 1977 until April 1981, Lehman Brothers from March 1981 until June 1983, Bateman Eichler Hill Richards from June 1983 until August 1985, Smith Barney Harris Upham & Co from August 1985 until December 1986, Prudential Securities from December 1986 until June 1995, Morgan Stanley from June 1995 until April 2007, Morgan Stanley from April 2007 until January 2009, and Wells Fargo from December 2008 until July 2013. He is not licensed within the industry, and has six customer disputes against him. Daggett’s former firm, Wells Fargo, can be sued in the FINRA arbitration forum for failing to reasonably supervise him while he was employed with them. Please call us at 312-332-4200 to speak to an attorney to find out how. The call is free.



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