Jeffries & Company is a major global securities and investment banking group that provides investment banking, sales & trading, research and asset management to corporate clients, institutional investors, and high net individuals. The principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), Jefferies & Company was founded in 1962 by Boyd Jefferies. The company is headquartered in New York City and has over 25 offices world-wide.
As a firm licensed by the Financial Industry Regulatory Authority (FINRA), one of Jeffries & Co.’s primary legal duties is to ensure ethical, honest trading by supervising its brokers and complying with all FINRA regulations. FINRA laws are designed to make firms conduct transparent transactions at all times, thus holding them accountable when wrongdoing occurs. Because Jeffries & Co. is legally required to supervise its brokers, they are also legally responsible for damages caused by unsupervised, unscrupulous representatives. FINRA allows investors to sue Jeffries & Co. for the replacement of assets lost due to the negligence or fraud of its brokers.
Ethical Issues and a Lack of Transparency
Unfortunately, as far as transparent trading is concerned, Jeffries & Co. does not possess a stellar record. From 2007 to 2012, Jeffries was fined on 4 separate occasions for inaccurate or missing information on trades submitted to the Order Audit Trading System (OATS). In one case, Jeffries reported trades that occurred that were not reported elsewhere. Altogether, these fines totaled $213,500. Trades that are accurately and fastidiously reported are crucial to a healthy, honest financial industry—failing to report may be symptomatic of larger company-culture issues.
Additionally, in 2014 a broker named Sage Kelly caused 5 clients to leave Jeffries supposedly over allegations of using drugs and sexual favors to win potential clients. While Kelly denied the allegations, his behavior was reported by his wife and corroborated by former clients. At the time, Sage Kelly was considered a rising star at Jeffries, indicating a total lack of supervision at best.
Call Today to Request Your Free Consultation
If you have suffered losses due to a Jeffries & Co. employee, either through fraud, negligence, or unethical behavior, FINRA grants you the right to hold Jeffries & Co. directly responsible for repaying your lost assets. However, FINRA is a policing body, so they do not fight to reclaim your losses directly—that is Meyer Wilson’s privilege and sole aim. Our investment fraud attorneys have the skill, resources, and experiences to win back your losses from large investment firms, no matter how big or well-established. We conduct claims in state and federal court nationwide, as well as in arbitration with FINRA and the American Arbitration Association.
See if you have a case against Jeffries & Co. Contact Meyer Wilson for a free case evaluation.