Raymond James Fights $1.7 Million Annuity "Churning" Settlement Hot

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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.

 

However, the arbitrator failed to require the client to return the annuities at the center of the case.

 

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.

 

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