Securities Arbitration Lawyer Blog
FINRA has suspended former Raymond James broker Jerry Rice from the securities industry for six months. Mr. Rice consented to the sanctions and to the entry of findings that he circumvented Raymond James’ procedures prohibiting, without the firm’s approval, representatives from receiving gifts from customers and being named as a beneficiary in a customer’s will.
Mr. Rice’s suspension began on September 20, 2021, and is scheduled to end on March 19, 2022. He was also fined $10,000.
If you have suffered investment losses with Jerry Rice, 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. 2019064312901
Jerry Rice and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on September 17, 2021, over findings that Mr. Rice received $477,000 in monetary gifts from a senior customer and was also named as a beneficiary in the same customer’s will, in violation of his firm’s policies.
FINRA indicated that this matter originated after the customer’s attorney contacted FINRA.
At all times relevant, Raymond James’ prohibited representatives from (1) receiving gifts from customers, individuals, or corporations other than the firm in excess of $100 per year without approval and (2) being designated as a beneficiary of the estate of a customer who was not a relative.
In October 2013, one of Mr. Rice’s customers, who was 89 years old and a widow, began making monetary gifts to him. From that time until January 2019, Mr. Rice received a total of $477,000, some of which were made to Mr. Rice’s immediate family members. Between 2013 and 2017, Mr. Rice attested in response to annual compliance questionnaires that he understood that representatives were not permitted to receive gifts in excess of S100 per person, per year, without written pre-approval from the firm. However, Mr. Rice did not request permission to receive the gifts and did not disclose the gifts to the firm. In 2018 and 2019, Mr. Rice failed to disclose on annual compliance questionnaires that he had received gifts in excess of $100 during the previous year.
By October 2013, Mr. Rice learned that the customer had named him a beneficiary in her will. But between 2013 and 2017, Mr. Rice attested in response to annual compliance questionnaires that he understood representatives were not permitted to be named a beneficiary of the estate of any customer who was not a relative. However, Mr. Rice did not disclose the bequest to the firm. In addition, in 2018 and 2019, Mr. Rice did not disclose in response to annual compliance questionnaires that he was a beneficiary of any unrelated customer’s estate.
FINRA Rule 2010 requires member firms and associated persons to observe high standards of commercial honor and just and equitable principles of trade. Circumventing firm procedures designed to protect customers is inconsistent with high standards of commercial honor and just and equitable principles of trade. Therefore, Mr. Rice violated FINRA Rule 2010.
Jerry Rice (CRD#: 375290)
Mr. Rice became registered with FINRA in 1970. He registered as a General Securities Representative in 1999 through an association with Raymond James Financial Services, Inc. On November 15, 2019, Raymond James filed a Uniform Termination Notice for Securities Industry Registration (Form U5) reporting Mr. Rice resigned voluntarily. On November 27, 2019, the firm filed an amended Form US reporting that Mr. Rice was under review in connection with the conduct described in the AWC.
Mr. Rice is not currently registered or associated with a FINRA member. However, he remains subject to FINRA’s jurisdiction pursuant to Article V, Section 4 of FINRA’s By-Laws.
Mr. Rice’s public FINRA CRD also shows two prior customer complaints from 1990 and 1992.
How to Recover Losses or Obtain a Free Consultation
If you have suffered investment losses with Jerry Rice, or Raymond James, contact New York securities arbitration lawyer Jorge Altamirano of Iorio Altamirano LLP at jorge@ia-law.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.