Raymond James Financial Services, Inc. broker Steve Reznick (CRD# 1067199) is accused of recommending a speculative investment strategy. Reznick has been registered with Raymond James Financial Services, Inc. in Tallahassee, Florida from 1989 to 2018.
According to public records, Reznick recommended his clients over-concentrate their investment portfolios in the pharmaceutical and biotechnology sectors. It is alleged that Reznick recommended his clients invest in Achaogen, Inc., Acadia Pharmaceuticals, Alexion Pharmaceuticals, Celgene, Intrexon Corp., Mylan, Perrigo Company, Receptos, Inc., and Ziopharm Oncology, Inc.
Reznick is also alleged to recommend an options overlay strategy, which involved the purchase of long and short calls and puts. Some instances involved naked options, which exposed his clients to extraordinary risk.
Reznick has been the subject of 20 customer complaints between 1998 and 2018, according to his CRD report. Recent complaints are regarding:
July 2019. “Negligence and violation of FINRA Rules 2110, 2310, 2120, 2330 and 2111, Breach of Contract, Negligent Supervision, Breach of Fiduciary Duty and Violation of Florida Statute §772.11(1) (Elder/Disabled Financial Exploitation). 08/18/199-10/31/2018.” The customer is seeking $120,000 in damages in this pending customer complaint.
March 2019. “Overconcentration, Unauthorized Trading, Negligence, Breach of Contract, Negligent Supervision, Breach of Fiduciary Duties and Violation of FINRA Rules 2110, 2310, 2120, 2330 and 2111.” The customer is seeking $60,000 in damages in this pending customer complaint.
March 2019. “Negligence; Breach of Contract; Negligent Supervision; Breach of Fiduciary Duty.” The customer is seeking $500,000 in damages in this pending customer complaint.
March 2019. “Unsuitability, Overcentration, Breach of Fiduciary Duty, Negligence, Negligent Representation, Intentional Misrepresentation, Negligent Supervision, Breach of Contract.” The customer sought $350,000 in damages and the case was settled for $275,000. This case was regarding sector concentration and common and preferred stocks.
January 2019. “Negligence and Violation of FINRA Rules 2110,2310,2120,2330 and 2111; Breach of Contract; Negligent Supervision; and Breach of Fiduciary Duty. 6/11/09 – 9/28/18.” The customer is seeking $100,000 in damages in this pending customer complaint.
January 2019. “Overconcentration, Unauthorized Trading, Negligence, Constructive Fraud. 3/12-8/18.” The case is currently pending.
December 2018. “Poor Performance.” The customer is seeking $15,267 in this pending customer complaint.
November 2018. “Suitability, Overconcentration, Unauthorized Trading, Negligence and Violation of FINRA Rules 2110, 2310, 2120, 2330 and 2111, Breach of Contract, Negligent Supervision and Breach of Fiduciary Duty. 9/26/16 – 10/31/18.” The customer sought $125,000 in damages and the case was settled for $65,000. This case was regarding sector concentration.
October 2018. “Unsuitability, Respondeat Superior, Failure to Supervise, Negligence, Fraud, Breach of Contract, Negligent Supervision, Breach of Fiduciary Duty. 2/27/96 – 9/28/18.” The case was settled for $30,000.
September 2018. “Misrepresentations and omissions relating to unauthorized trades, fraud, breach of fiduciary duty, failure to supervise, negligence, gross negligence, negligent retention, negligent misrepresentation, concentration, and respondeat superior liability. 3/25/15 to 9/13/18.” The customer sought $2 million in damages and the case was settled for $145,000. This case was regarding sector concentration.
September 2018. “Suitability.” The customer sought $142,183 in damages and the case was settled for $10,000. This case was regarding sector concentration and common and preferred stocks.
September 2018. “Unsuitability, Common Law Fraud, Breach of Contract, Negligent Supervision, Breach of Fiduciary Duty, Violation of the Florida Securities Act.” The customer sought $100,000 in damages and the case was settled for $14,999. This case was regarding sector concentration and options.
August 2018. “Poor Performance.” The customer sought $100,000 in damages and the case was settled for $17,500. This case was regarding sector concentration. This case was regarding sector concentration.
August 2018. “Poor Performance.” The customer sought $40,000 in damages and the case was settled for $5,000. This case was regarding sector concentration.
August 2018. “Respondeat Superior, Unsuitability, Common Law Fraud, Breach of Contract, Negligent Supervision, Breach of Fiduciary Duty. 10/2/12 – 7/31/18.” The case is currently pending.
July 2018. “Unauthorized Trades, Suitability.” The customer sought $35,000 in damages and the case was settled for $12,961.
May 2018. “Concentration, Performance.” The customer sought $58,721 in damages and the case was settled for $5,000.
March 2018. “Poor Performance 1/04/14-Present.” The case was settled for $17,500.
June 2017. “Client alleged unauthorized trading and unsuitable investments. 8/11/2015 – 6/05/2017.” The customer sought $38,000 in damages and the case was settled for $15,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Raymond James Financial Services, Inc. may be liable for investment or other losses suffered by Reznick’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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