Gwendolyn Hayes: Broker Investigation

Regulators Bar Gwendolyn Hayes after Investigation

Former Edward Jones broker Gwendolyn Hayes CRD #5125590 has reportedly accepted an industry bar following a Financial Industry Regulatory Authority (FINRA) investigation into allegations that she altered client account information without authorization.

The investigation, which began in December, allegedly focused on claims that Hayes had changed client investment objectives, mis-marked transactions, and accepted unauthorized trading instructions.

Hayes, who reportedly spent her entire 14-year career at Edward Jones in Tualitin, Oregon, allegedly declined to provide requested information to FINRA, resulting in the automatic industry bar. Edward Jones had reportedly terminated her in April for violating firm policies related to account information and advisory reviews.

Following her termination, Hayes worked briefly at Ameriprise Financial before reportedly leaving the industry in August, according to her FINRA BrokerCheck profile.

Unauthorized Trading and  Failure to Supervise

Broker misconduct occurs when financial advisors engage in unethical or fraudulent practices, such as misrepresenting investments, unauthorized trading, or misusing client funds. FINRA-registered broker-dealers have a duty to supervise their brokers to prevent such misconduct.

If the firm fails to supervise its brokers properly, it can be held liable through FINRA arbitration. Investors who suffer losses due to a broker’s misconduct can file a claim against both the broker and the firm, alleging failure to supervise. If a firm neglects this duty, it may be ordered to compensate the affected investor through an arbitration award.

Class Action Lawsuit vs. Individual FINRA Arbitration Lawsuit

You may wonder whether a large class action lawsuit is a better litigation option  than an individual FINRA arbitration case.  The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option.  Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.

Recovery of Investment Losses

If you have suffered investment losses with Gwendolyn Hayes, the securities attorneys at the White Law Group may be able to help you by filing a FINRA lawsuit. Please call our offices at (888) 637-5510 for a free consultation. We take cases in all 50 states including Oregon.

National Securities Attorneys

The White Law Group, LLC is a national law firm in securities fraud, securities arbitration, investor protection, and securities regulation and compliance. With offices in Chicago, Illinois and Seattle, Washington, the firm is dedicated to assisting investors across all 50 states with claims against their brokerage firms. Since its founding in 2010, The White Law Group has handled over 800 FINRA arbitration cases.