FINRA has barred former Raymond James Financial Services, Inc. broker Jeffrey Travis Drost from the securities industry after he refused to provide information and documents requested by FINRA.
If you have suffered investment losses with Jeffrey Travis Drost, or Raymond James, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms.
FINRA Letter of Acceptance, Waiver, and Consent No. 2021071218701
Jeffrey Travis Drost and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on August 27, 2021, after FINRA alleged that Mr. Drost refused to provide information and documents requested by FINRA pursuant to FINRA Rule 8210, in violation of FINRA Rules 8210 and 2010.
FINRA indicated that the matter originated from its investigation of the Form U5 filed by Raymond James on behalf of Mr. Drost.
On July 29, 2021, FINRA requested, pursuant to FINRA Rule 8210, that Mr. Drost provide information and documents in connection with FINRA’s investigation of Mr. Drost’s potential unauthorized borrowing from customers. On August 6, 2021, Mr. Drost provided a partial but incomplete response to this request. On August 13, 2021, FINRA issued a second request, pursuant to FINRA Rule 8210, requesting the same information and documents that were previously requested. On August 19, 2021, Mr. Drost provided another partial but incomplete response to this request.
During an August 25, 2021 call, and through their agreement, Mr. Drost acknowledged that he received FINRA’s request and would not produce the outstanding information or documents requested.
By refusing to produce all the information and documents requested pursuant to FINRA Rule 8210, Mr. Drost violated FINRA Rules 8210 and 2010.
FINRA Rules 8210 and 2010
FINRA Rule 8210(a)(1) states, in relevant part, that FINRA may require a person subject to FINRA’s jurisdiction “to provide information orally, in writing, or electronically . . . with respect to any matter involved in [a FINRA] investigation[.]” FINRA Rule 8210(c) further states that “[n]o . . . person shall fail to provide information . . . pursuant to this Rule.”
A violation of FINRA Rule 8210 is also a violation of FINRA Rule 2010, which requires member firms and their associated persons to “observe high standards of commercial honor and just and equitable principles of trade.”
Jeffrey Travis Drost (CRD#: 4489021)
Mr. Drost entered the securities industry in December 2001. In March 2017, he became registered with FINRA as a General Securities Representative through his association with Raymond James Financial Services, Inc. On April 28, 2021, Raymond James filed a Uniform Termination Notice for Securities Industry Registration (Form U5) stating that the firm terminated Mr. Drost’s employment for “[o]btaining loans from clients, including family member clients, without disclosure or prior approval in violation of firm policy and industry rules.”
Although Mr. Drost is not currently associated with a FINRA member, FINRA retains jurisdiction over him pursuant to FINRA’s By-Laws.
Raymond James – A Duty to Supervise
Financial institutions like Raymond James must properly supervise financial advisors and customer accounts. Brokerage firms must establish and maintain a reasonably designed supervisory system to ensure their registered representatives’ compliance with firm policies, securities laws, and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.
How to Recover Losses or Obtain a Free Consultation
If you have suffered investment losses with Jeffrey Travis Drost, or Raymond James, contact New York securities arbitration lawyer Jorge Altamirano of Iorio Altamirano LLP at email@example.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.