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Richard Reames: Robert W. Baird Denies Churning Complaint
Richard Reames (CRD# 712401), a financial advisor based in Ashland, Kentucky, recently received an investor complaint alleging his conduct led to damages exceeding $200,000. Records maintained by the Financial Industry Regulatory Authority show that he is currently registered as a broker and an investment advisor with Robert W. Baird & Company.
Investor Complaint Alleged Suitability Violations, Churning
The recent investor complaint against Mr. Reames was filed in October 2022, according to a disclosure on his FINRA-provided BrokerCheck report. It alleged that as a representative of Robert W. Baird & Company, he recommended over-the-counter equities that sustained losses, churned investments in her account, and “moved assets into an advisory account without her informed consent.” The complaint alleged damages of $209,724.08 and was denied by the firm.
What Is Churning?
In 2020 FINRA released an investor resource that defined excessive trading as “the situation where a broker makes a large number of trades in a customer’s account not to benefit the customer but to generate commissions for the broker.” In more severe cases, known as churning, a broker makes excessive transactions in the client’s account “with either an intent to defraud or with reckless disregard for the customer’s interests.” Additional information on potential red flags indicating excessive trading can be found via FINRA. To catch signs of such conduct, the regulator advises investors to review their account documents for any discrepancies between the information recorded and the information provided to the broker; to monitor trade confirmations and account statements, and contact their broker regarding any potential unauthorized transactions, high-volume activity, or excessive fees or commissions; and to carefully question their representatives about any potential excessive trading.
FINRA: Reames Based in Ashland, Kentucky
According to records provided by the Financial Industry Regulatory Authority, Richard Reames has 42 years of experience as a broker. The Ashland, Kentucky representative has been a broker and an investment advisor with Robert W. Baird & Company since 2019, before which he was registered with JJB Hilliard WL Lyons since 1981. He has passed six securities industry qualifying exams, including the Series 65 and the Series 63. More information about his qualifications and history as a broker can be found on his FINRA BrokerCheck report. (Information current as of November 17, 2022.)
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