Allegations of unsuitability and mismanagement of assets against J.P. Morgan and broker Edward Turley
Sonn Law Group has filed suit against JP Morgan over allegations of misconduct of financial advisor Ed Turley. J.P. Morgan is accused of gross unsuitability and mismanagement of assets for clients of Edward Turley. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.
The client, a wealthy but unsophisticated investor, claimed that Turley took control of his account in March 2020. From that point, Turley rarely spoke with the client and implemented a risky strategy, putting the client’s savings in danger.
For example, Turley recommended that the client borrow over $3 million from J.P. Morgan to purchase more investments. Rather than being held in a traditional margin account, the debt was being held in foreign currencies, meaning that the client had borrowed millions of Euros and Japanese Yen.
Another example of Turley’s abuse as a financial adviser is the fact that the client’s portfolio was outrageously aggressive and over-concentrated in highly speculative stocks and bonds. The stocks were largely preferred stocks, energy-related stocks and master limited partnerships (“MLPs”). The stocks being concentrated in only a few areas made them very risky and volatile.
None of the bonds were “investment grade” with several being rated below B-, which is typically a sign that a bond is on its way to defaulting. This type of portfolio would only be suitable for a speculative and experienced investor, which this client was not. The allegations state that Turley essentially treated the client’s accounts as his own, rapidly making trades without authorization from the client.
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, J.P. Morgan may be liable for investments or other losses suffered by Turley’s customers.
Contact Sonn Law to Discuss Recovery Options
If you suffered losses investing with Edward Turley or J.P. Morgan, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.