Raymond Smith Suspended By FINRA And Maryland Regulator Over Unsuitable Advice

The State of Maryland and FINRA both sanctioned securities broker Raymond Hill Smith Jr. [CRD: 731506, Macon, Georgia], according to information reported on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Smith joined Smith Brown Groover Inc. on May 18, 1981, and SBG Wealth Management on February 19, 2003. Continue reading for details about the regulatory disclosures connected to Smith and his firms.

Maryland Sanctioned Smith For Unsuitable Recommendations

On February 25, 2025, the State of Maryland issued Case: BD20240472 against Raymond Smith. The sanction revoked his registration in Maryland and prohibited him from applying for future registration as a broker, dealer, or adviser in the state. Regulators alleged that Smith and Smith Brown Groover recommended a complex trading strategy centered on an exchange-traded note (ETN) to 350 investors (260 clients) without adequately understanding the risks. Investigators found that Smith allowed extended investments in the ETN contrary to its guidelines, did not implement proper supervision or suitability procedures, and relied on incomplete testing that overstated potential returns. When market volatility surged in early 2018, the ETN’s value collapsed, and investors apparently suffered losses.

Raymond Smith Sanctioned By FINRA For Misleading ETN Strategy

On November 6, 2024, FINRA issued Case: 2019063352401 sanctioning Smith for his role in a high-risk ETN investment strategy. Smith received two suspensions: one lasting from December 2, 2024, through June 1, 2025, and another lasting from June 2, 2025, through October 1, 2025. He was also fined $15,000, which he paid on November 19, 2024. According to FINRA, Smith and his firm recommended the ETN strategy without fully understanding the product’s daily trading design, risks, or unsuitability for long-term holding. Smith reportedly failed to create supervisory procedures or monitor risks or client concentration.

Smith Brown Groover Inc. Investor Accused Smith Of Breach Of Fiduciary Duty And Failure To Supervise

Also, a Smith Brown Groover Inc. client filed FINRA Arbitration No. 19-03135 about Raymond Smith. Allegedly, Smith breached his fiduciary duty and failed to supervise in connection with volatility-linked products including exchange-traded notes. Consequently, on June 21, 2022, Smith Brown Groover Inc. settled this matter by paying the client $554,406.00 in damages.

Raymond Smith Disclosed Negligence Allegations By Smith Brown Groover Inc. Client

Specifically, a client of Smith Brown Groover Inc. disputed Raymond Smith’s sales practices by filing FINRA Arbitration No. 19-01344. Allegedly, Smith was negligent, breached his fiduciary duty, made unsuitable recommendations, made misrepresentations and omissions, and failed to supervise. It appears that Smith caused the client to sustain damages linked to variable annuities and exchange-traded notes. For this reason, Smith Brown Groover Inc. agreed to settle the dispute on December 20, 2022, by paying compensation amounting to $425,000.00.

Smith Brown Groover Inc. Investor Accused Smith Of Unsuitable Recommendations

Particularly, a Smith Brown Groover Inc. client filed FINRA Arbitration No. 19-00400 about Raymond Smith. Evidently, the client claimed that Smith gave unsuitable advice concerning volatility-linked products given the client’s risk tolerance. Because of this, the investor allegedly sustained damages. As a result, on September 10, 2019, Smith Brown Groover Inc. settled this matter by paying the client $132,500.00 in damages.

Seeking More Information About Securities Broker Raymond Smith?

Did you experience losses because of Raymond Smith? If so, contact Soreide Law Group at (888) 760-6552 or online and speak with a securities lawyer about possibly recovering your investment losses. Soreide Law Group has recovered damages for investors throughout the United States. Also, the firm works on a contingency fee arrangement and covers all costs upfront. Smith and the firms he worked with deny any allegations of misconduct.