On August 25, 2010, a FINRA arbitration panel ordered Raymond James &
Associates and one of the firm's brokers to buy back $1.4 million
in auction-rate securities from a Texas couple for $925,000.
The $925,00 award was less than the $1.4 million originally requested
in the claim, a fact that one arbitration panelist disagreed with. The
breach of fiduciary duty,
misrepresentation and fraud, according to the Newswire.
"I believe the award to the Glendennings should be $1,400,000 instead
of $925,000," wrote the dissenting arbitrator.
The couple's broker, Larry Milton, was informed that the couple wished
to invest in certificates of deposit. Instead, Milton invested the couple's
money in auction-rate securities consisting of sewer revenue bonds.
This is the second ruling against Raymond James in less than six weeks.
On July 19, the firm was ordered to buy back $2.5 million in auction-rate
securities from investor Greg Merdinger.