Written by The White Law Group• September 7, 2019• 2:07 pm• Broker Investigations, Current Investigations

Jody B. Bowers Broker Investigation

Financial Advisor Jody B. Bowers, Lowell & Co. in Abilene, Texas

Are you concerned about investments with Jody B. Bowers in Abilene, Texas? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim.

According to a press announcement on August 5, Lubbock investment adviser Lowell & Company Inc. paid a $40,000 fine to the State of Texas for allegedly failing to supervise financial advisor Jody B. Bowers, whose clients reported incurred massive losses by holding onto an exchange-traded fund designed for short-term trading.

Lowell & Co. purportedly violated its supervisory procedures by allegedly not reviewing the monthly account statements for the discretionary accounts managed by Bowers, according to the announcement.

Bowers was allegedly buying and selling shares of the Proshares Ultra VIX Short-Term Futures ETF, a leveraged fund (symbol: UVXY) in two discretionary accounts for clients.

Leveraged ETFs use financial derivatives and debt to magnify the returns of an underlying index. The UVXY fund seeks to profit by capitalizing on volatility in the S&P 500 Index, which tracks the performance of 500 widely held large U.S. companies across the major sectors of the economy. The UVXY benefits when the S&P 500 index declines.

Although the prospectus for the UVXY states it is “intended for short-term use” and it requires almost daily monitoring, Bowers allegedly held the fund in one client’s account for 987 days and reportedly sold the shares for a 93% loss.

Bowers purportedly held the UXVY in a second client’s account for 356 days and allegedly lost 98% of the account’s value, according to the announcement.

According to his FINRA BrokerCheck report, Bowers was reportedly affiliated with Lowell & Co. in Abilene, Texas from April 2014 until June 2018. He reportedly has 2 customer complaints on his broker check record, according to FINRA. Allegations include improper investment recommendations, misrepresentation and over-concentration.

Investigating Potential Claims

The White Law Group is investigating potential lawsuits regarding the liability that Bower’s employers may have for failure to properly supervise him.

When brokers violate securities laws, such as making unsuitable investments or over-concentration, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.

Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee. We represent investors in FINRA arbitration claims in all 50 states, including Texas. Our attorneys have recovered millions of dollars from many brokerage firms in the past.