Financial Advisor James Edward Lyons Barred for Failing to Cooperate with FINRA Investigation
Former Raymond James financial advisor, James Edward Lyons (Lyons), recently settled allegations with the Financial Industry Regulatory Authority (FINRA) following an enforcement action. The underlying basis of the investigation involved allegations Lyons engaged in unauthorized trading. As a consequence of Lyons’ failure to cooperate with FINRA’s investigation, FINRA permanently barred him from the financial industry.
Lyons (FINRA CRD No. 1020397) entered the financial industry in 1983. From 1993 to 2013, Lyons worked for Morgan Keegan & Company, Inc. – the defunct broker-dealer that defrauded thousands of customers during the financial crisis. From 2013 to May2017, Lyons worked for Raymond James & Associates, Inc. (“Raymond James”). Lyons’ FINRA BrokerCheck report discloses eight negative disclosures, including six customer disputes. Following his disciplinary action, Lyons no longer woks in the financial industry.
FINRA’s Department of Enforcement initiated an investigation into Lyons’ alleged misconduct. FINRA specifically investigated Lyons’s alleged receipt of funds from a Western International customer. FINRA sent Lyons a request to provide documents and information pursuant to FINRA Rule 8210. According to FINRA, Lyons failed to cooperate with the investigation.
Based upon the foregoing alleged misconduct, FINRA asserted Lyons violated FINRA Rules 2010 and 8210. Specifically, FINRA Rule 8210 authorizes FINRA, in the course of its investigations, to require persons associated with a FINRA member to “provide information orally, in writing, or electronically . . . with respect to any matter involved in the investigation...” Here, Lyons failed to provide information in response to FINRA’s request, thereby violating FINRA Rule 8210.
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