- March 31, 2019
- Coastal Equities
Dudley Stephens is a former Financial Advisor at Coastal Equities, Inc. in New York, NY. Dudley Stephens has been in the securities industry since 2000 and previously worked at Prospera Financial Services, Wells Fargo Advisors and seven brokerage firms that have since been expelled from the securities industry.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on February 20, 2019, a customer filed a complaint against Dudley Stephens, alleging “Stephens’ conduct included making unauthorized trades, trading their accounts excessively and recommending unsuitable investments.” The alleged damages are $500,000 and the matter remains pending.
In addition to the aforementioned complaint, three other customers have filed complaints against Dudley Stephens:
- December 2018—Customer alleges that “excessive and unauthorized commissions were charged of approximately $50k per year for 2.5 years in her advisory account. [REDACTED] also believes that the $100k she invested in an unauthorized PST through this RR is a sham and a total loss of her investment.” The matter was settled for $41,250.
- November 2004—”CLIENT CLAIMS CHURNING, UNSUITABLE INVESTMENTS, UNAUTHORIZED TRADING, AND NEGLIGENCE ON THE REG REP.” The matter was settled for $15,000.
For a copy of Dudley Stephens’ CRD, click https://brokercheck.finra.org/individual/summary/4119268#disclosuresSection
Dudley Stephens has also been the subject of two regulatory events. In December 2018, FINRA barred Dudley Stephens indefinitely for failing to respond to an inquiry it made for information. In 2014, FINRA suspended Dudley Stephens for ten days for the following misconduct:
“STEPHENS CONSENTED TO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT HE IMPROPERLY REMOVED CONFIDENTIAL AND PROPRIETARY INFORMATION FROM HIS MEMBER FIRM. THE FINDINGS STATED THAT STEPHENS PRINTED A SPREADSHEET CONTAINING, INTER ALIA, CUSTOMER NAMES, ACCOUNT NUMBERS, SOCIAL SECURITY NUMBERS, ADDRESSES AND OTHER INFORMATION FOR FIRM CUSTOMERS.”
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
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