FINRA fined JP Morgan $3.2 million after exposing customers to a high-risk securities trading strategy that used a complex combination of margin and leverage. The regulator wrote that JP Morgan ignored multiple red flags about one of its brokers, leading FINRA to sanction JP Morgan for failure to supervise. Meanwhile, customer claims against the former JP Morgan broker have produced $55 million in settlements and awards.
In 2022, FINRA barred JP Morgan broker Edward Turley of San Francisco following an investigation into improper exercise of discretion and unsuitable trading. Following FINRA's decision to ban Edward Lawrence Turley (CRD #1872294) from securities trading, Turley continued to accrue customer complaints, with 11 settlements and an additional award/judgment, totaling more than $55 million in damages.
The claims resulting in these multi-million dollar settlements alleged unsuitable trading, unauthorized exercise of discretion, unauthorized private securities transactions, unsuitable investment recommendations, and misrepresentation.
Meanwhile, another claim alleging statutory fraud, breach of fiduciary duty, negligence and gross negligence, misrepresentation, omission, unjust enrichment, and failure to supervise, resulted in an arbitration award of four million dollars in damages and fees.
JP Morgan also terminated broker Turley, writing the firm discharged him for "loss of confidence concerning adherence to firm policies and brokerage order handling requirements."
BrokerCheck listed several additional business activities for Edward Turley in Northern California: 3030 Airport Rd LLC in Napa, CA; Strategic Business Inc; and Trumpet Consulting LLC in Kentfield, CA.
If you invested with former JP Morgan broker Edward Turley or with any investment adviser or brokerage firm whose failure to supervise a registered representative whose unsuitable, unauthorized trades or securities fraud has resulted in losses or other damages, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.