Customers Raise Allegations Of Edward Jones Broker Misconduct

Edward Jones – an investment adviser firm and brokerage firm regulated by both Financial Industry Regulatory Authority (“FINRA”) and Securities Exchange Commission (“SEC”) disclosed on its FINRA BrokerCheck Profile that on 71 occasions, the firm has been on the receiving end of a regulatory action for allegedly violating rules or laws in the securities industry. Additionally, Edward Jones disclosed 146 arbitrations in which the firm either allegedly failed to supervise its brokers, engaged in sales practices violations, or committed another form of misconduct. The following Edward Jones’ employees, Pamela Cavness, Sherrie Webb-Zucker, Jeffrey  Osborne and Caleb Knight have all disclosed incidents alleging that they engaged in misconduct in the securities industry.

November 14, 2018 Lawsuit Involving Edward Jones’ Pamela Cavness

Pamela Kay Cavness (CRD#: 1397826, St. Louis, Missouri) used to be the chief compliance officer for Edward Jones. Notably, Edward Jones reported that on November 14, 2018, Pamela Cavness became a defendant putative class action lawsuit #2:18-cv-00714-JAM-AC filed in the U.S. District Court for the Eastern District of California. The civil complaint alleged that Edward Jones or Pamela Cavness breached a fiduciary duty to a class of investors when placing them in fee-based accounts from March 30, 2013 to March 30, 2018. Moreover, the complaint alleges that Edward Jones or Pamela Cavness violated federal securities laws in connection with transitioning customers’ commission based accounts to fee-based accounts. Because of this, the customers have sought compensatory damages. While the customers’ claims may hold true, Pamela Cavness denies the allegations, and this civil matter is unresolved. Edward Jones terminated Pamela Cavness’ employment on January 4, 2016.

March 20, 2017 Complaint Concerning Edward Jones Broker Sherrie Webb-Zucker

Sherrie Lynn Webb-Zucker (CRD#: 5737231, Plymouth, Michigan) is employed as a financial advisor for Edward Jones. Sherrie Webb-Zucker reported on her FINRA BrokerCheck Report that a customer contested her sales practices. Specifically, on March 20, 2017, an Edward Jones customer filed a complaint about Sherrie Webb-Zucker’s municipal bond purchases. Namely, the customer contended that Sherrie Webb-Zucker made unsuitable municipal bond purchases for the customer’s account. Those municipal debt products, according to the customer, were not appropriate and caused the customer to incur losses. Eventually, the firm investigated the allegations concerning Sherrie Webb-Zucker’s unsuitable trading. On May 10, 2017, the firm agreed to pay the customer $23,147.45 to resolve the matter. Sherrie Webb-Zucker joined Edward Jones on January 5, 2010.

June 1, 2017 Complaint About Edward Jones Advisor Jeffrey Osborne

Jeffrey Robert Osborne (CRD#: 4796694, Newport News, Virginia) joined Edward Jones on July 8, 2004 as a financial advisor. Apparently, FINRA BrokerCheck shows that one of Osborne’s customers lodged a complaint on June 1, 2017 about Osborne. According to the customer, Osborne failed to disclose significant information about the customer’s fee-based account. Apparently, the customer held a retirement account which inappropriately turned into a fee-based account. Allegedly, there were omissions in reference to managed wrap accounts. Given the allegations of omissions, Edward Jones opted to settle the matter to avoid litigation. Therefore, on August 25, 2017, Edward Jones acquiesced to paying the customer $24,600.00.

November 15, 2018 Termination Of Edward Jones’ Caleb Knight

Caleb Knight (CRD#: 6628797, Tacoma, Washington) was a general securities representative of Edward Jones from May 16, 2016 to November 15, 2018. Edward Jones reported on Caleb Knight’s FINRA BrokerCheck profile that it terminated Caleb Knight after allegations of misconduct were raised against him. Specifically, the firm was investigating Caleb Knight’s possible outside business activities. During the investigation into Caleb Knight engaging in activities away from Edward Jones, Caleb Knight voluntarily resigned.

Investors who have incurred losses from Edward Jones employees Pamela Cavness, Sherrie Webb-Zucker, Jeffrey Osborne or Caleb Knight are encouraged to contact Soreide Law Group at (888) 760-6552 for a free consultation. Our firm has recovered millions of dollars for investors who have suffered losses due to broker misconduct such as brokers engaging in unauthorized trading or outside business activities. We represent clients on a contingency fee basis and advance all costs.