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Texas Couple Wins Arbitration Award From Raymond James & Associates

David P. Meyer, Esq.

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 investors claimed 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.