Broker James Blake Daughtry Banned from Trading – Compensation Help

FINRA Permanently Bars James Blake Daughtry From Broker Activities

The Financial Industry Regulatory Authority (FINRA) barred James Blake Daughtry (CRD#: 3272282), preventing the former broker and investment adviser from working as a broker and from associating in any way with a broker-dealer firm, according to FINRA’s BrokerCheck reports.
Regulatory Action

Daughtry’s brokerage career began in 1999 and proceeded seemingly without incident until March 18, 2020, when he was discharged from Kestra Investment Services, LLC, after allegations that he had violated FINRA Rule 8210 (authorizing FINRA to access to records) and FINRA Rule 2010 (conducting business with “high standards of commercial honor”). Daughtry did not appear to offer on-the-record testimony and dispute alleged violations of potentially fraudulent and unauthorized transactions. As a result, a letter was executed wherein Daughtry accepted FINRA’S findings and consented to FINRA’s permanent disbarment sanction, as well as to waiving the right to a hearing or appeal on the matter.

Customer Disputes

Subsequent to these allegations and disbarment, several customer disputes were filed involving Daughtry. On June 22, 2020, a client accused Daughtry of conducting unauthorized transactions, negligence, misrepresentations, and breach of fiduciary duties while the broker served under the employment of Kestra Investment Services. LLC. The claimant is seeking damages in the amount of $65,0000.

On July 23, 2020, another claimant stepped forward demanding damages totalling $1,500,000. According to the plaintiff’s claim, Daughtry solicited clients to open accounts with a third-party investment firm, again while under Kestra Investment Service’s employ. The Securities Exchange Commission (SEC) had established that the third-party investment firm had engaged in fraud.

The most recent customer dispute was filed on August 14, 2020 in relation to Daughtry’s activities while under the employment of Kestra Investment Services. LLC. This claimant also accused Daughtry of soliciting clients to open accounts with a third-party firm connected with fraud. The plaintiff seeks damages in the amount of $231,752.

These complaints are pending, as of this writing, and will be resolved via arbitration or potentially in court.

Daughtry’s Other Business Activities

BrokerCheck identifies Daughtry’s additional business involvements, which included owning a real estate investment firm, James Blake Daughtry Investment, in Dothan, Alabama. He also served as President of National League in Dothan, a position that involved managing a youth baseball league.

Daughtry was owner and president of The Daughtry Group in Dothan, Alabama, in which he provided investment advisory services through Kestra Advisory Services, LLC. In Austin, Texas, the broker worked as an investment advisor representative working through Kestra Advisory Services. Prior to these positions, Daughtry worked in the medical waste services industry and also invested in a pharmaceutical organization, Carmack Drug Company, LLC, in Opp, Alabama. 

 
 
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