Raymond James Financial Broker Investigation: Paul Snow IV
Investors who worked with Paul Snow IV(CRD #2963153) and Raymond James Financial may have questions following a recent regulatory action involving allegations involving account conversions, client disclosures, and supervisory oversight.
At The White Law Group, we investigate claims involving broker misconduct, unsuitable recommendations, and firm-level failures. If you experienced unexpected fees, unauthorized transactions, or account changes, you may be able to file a FINRA arbitration claim for recovery.
FINRA Sanctions Against Paul Snow IV
According to a recent enforcement action by Financial Industry Regulatory Authority (FINRA), Paul Snow IV was reportedly:
- Suspended for six months
- Fined $20,000
FINRA found that Snow allegedly:
- Converted 13 fee-based advisory accounts to commission-based brokerage accounts
- Affected 11 customers
- Executed 282 transactions over a two-day period (March 25–27, 2024)
- Failed to adequately inform clients about:
- The account conversions
- The resulting commission charges
These actions raised concerns about transparency, disclosure, and client consent—core obligations under industry rules.
Key Allegations: Account Conversions and Lack of Disclosure
The investigation found that Paul Snow IV allegedly:
- Acted on client requests to liquidate advisory accounts
- Incorrectly believed firm policy prevented executing trades within advisory accounts
- Converted accounts to brokerage accounts instead
- Did not inform clients about:
- The account structure change
- The commissions that would apply
This distinction is critical:
- Fee-based advisory accounts typically charge ongoing fees
- Brokerage accounts often involve transaction-based commissions
Clients may not have agreed to incur these additional costs.
FINRA Rule Violations
FINRA determined that the conduct violated:
- FINRA Rule 2010 – requiring high standards of commercial honor and just and equitable principles of trade
- FINRA Rule 3260(b) – prohibiting discretionary trading without proper written authorization
Unauthorized account changes and undisclosed fees can be serious violations that harm investors.
Raymond James Financial
Raymond James Financial reportedly:
- Identified the activity on March 28, 2024
- Found that the transactions generated over $30,000 in commissions
- Reversed the trades to eliminate client charges
- Ensured Snow did not retain commissions
The firm later filed a Form U5 indicating that Snow voluntarily left while under internal review related to client care standards.
Failure to Supervise
Firms like Raymond James Financial have a duty to supervise their financial advisors and prevent misconduct. When they fail to do so, investors may have claims under failure to supervise theories.
Learn more about your rights here: Failure to Supervise.
Read more about the firm here: Raymond James Review .
What Investors Should Watch For
If you worked with Paul Snow IV or another advisor, be alert for:
- Unexpected account type changes
- Trades you did not authorize
- Higher-than-expected fees or commissions
- Lack of communication about major account activity
These may be warning signs of misconduct or inadequate supervision.
Can Investors Recover Losses?
Even though the firm reversed the transactions in this case, investors in similar situations may still suffer damages, including:
- Lost investment opportunities
- Tax consequences
- Confusion or disruption to financial planning
Through FINRA arbitration, investors may be able to pursue recovery for losses caused by broker misconduct or firm negligence.
Speak With a Securities Fraud Attorney
If you believe your broker engaged in unauthorized trading, excessive commissions, or failed to properly disclose material information, you may be entitled to compensation.
The White Law Group represents investors nationwide in claims against brokerage firms, including Raymond James Financial.
FAQs
1. What did Paul Snow IV do wrong?
Paul Snow IV allegedly converted client accounts from advisory to brokerage accounts and executed transactions without properly informing clients, resulting in potential commission charges and rule violations.
2. Can I sue Raymond James Financial for broker misconduct?
Yes. If Raymond James Financial failed to supervise its broker or allowed misconduct to occur, investors may be able to file a claim through FINRA arbitration.
3. What is a failure to supervise claim?
A failure to supervise claim alleges that a brokerage firm did not properly monitor or control its advisors, allowing misconduct to occur. This can make the firm liable for investor losses.
