After being fined $1.7 million for failing to monitor a rep who was apparently churning an elderly client's annuity portfolio, Raymond James is fighting the arbitrators on what looks like technical grounds.
The initial complaint was settled in May by awarding the client -- at the time an elderly couple, the wife of which is now deceased -- $1.7 million in cash.
At some point between 2002 and 2006, former Raymond James rep Paul Davis seems to have exchanged one set of contracts for another, generating fees and charges along the way.
Since the $3.8 million portfolio actually turned a $800,000 profit from the trades, Raymond James protests that the math doesn't add up.
The firm also argues that its client agreements stipulate that all arbitration be handled under Florida law, whereas the case was heard under Texas rules.
The case goes to court in about six weeks.