Kestra Investment Services Complaint: Arbitration Claim Against James Daughtry For Losses

Kestra Investment Services Complaint

The investment fraud attorneys at Haslkorn & Thibaut are investigating James Blake Daughtry while at Kestra Investment Services for alleged financial losses suffered by investors.  Any clients or anyone having information on James Daughtry should contact our offices immediately.

About James Blake Daughtry

James Daughtry, now a former broker of the firm, has been named in the claim. He was sacked by Kestra last year. Daughtry operated from The Daughtry Group, a local office in Dotham, Alabama. Daughtry, an industry veteran of 20 years, has also been banned by FINRA.

A perusal of Daughtry’s BrokerCheck record reveals three other customer disputes that are pending, all fairly recent. These are:

June 2020 $65K sought by a customer alleging unauthorized transactions, misrepresentation, negligence, and breach of fiduciary duty.
July 2020 $1.5M sought by a customer in damages. It claims that Daughtry sought clients for a third-party registered investment advisor that, as per information made available by the Securities Exchange Commission (SEC), committed fraud. The unnamed investment advisor being Graysail could be a possibility.
August 2020 $232K sought in damages. The grounds are similar to the earlier case registered in July.

 

The BrokerCheck also reveals that Daughtry has been a registered broker earlier with several other firms, that include Liberty Securities, Stern Agee Financial, Ameriprise Financial Services, Southtrust Securities, Securities America, NFP Securities, and Wachovia Securities.

Current Complaint Against James Blake Daughtry | Kestra Investment Services

In his claim, the senior, unsophisticated, Alabama investor has alleged elder financial abuse, misrepresentations and omissions, unfair trade and deceptive practices, unauthorized transactions, negligence as well as other breaches. This is in addition to the claim of supervisory failure and securities fraud.

He contends that his seeking help managing his IRA led to Daughtry setting up his IRA account with Graysail, the now-defunct registered investment advisor, through Equity Trust, an administrative firm, and that he was unaware of these actions.

These moves initiated by James Daughtry led to him concentrating all his assets in the eponymously named Small World Capital, run by a certain Mr. Smalls.

In effect, Daughtry had sold away from his employer, Kestra. That too, a product not approved by his firm.

The claim goes on to say that Kestra failed to supervise Daughtry, leading to him losing $232K. He is now seeking $500K in damages.

Kestra’s Supervisory Failure

Kestra operated on a model of running branch offices that did not have supervisory oversight. The model relied on hiring brokers willing to cover the cost of running the establishment, possibly in return for the right to sell in the name of the firm, as Daughtry did in Dotham. This, however, does not exonerate Kestra from its supervisory responsibilities.

Kestra and James Daughtry – Investor Guidance

Haselkorn & Thibaut specializes in fighting for investors wronged investors nationwide. We have 45 years of experience and a 95% win rate. If you have concerns about your dealing with Kestra and/ or James Daughtry, please reach out to us on 1-800-856-3352.

 

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