Welcome to Financial Advisor IQ
Follow

RBC Ordered to Pay Back $50,000+ for Broker’s Alleged Actions

April 17, 2019

RBC Capital Markets is on the hook for more than $50,000 as a result of a Finra arbitration panel ruling that the U.S. broker-dealer of the Royal Bank of Canada violated Florida law and Finra rules, according to news reports.

The panel ruled in favor of Sonya Khaleel, who claimed in a Nov. 7, 2018 dispute that James Earl, a broker at RBC, assured her that her money was in solid investments but was instead in high-risk unsecured senior notes issued by oil and gas companies, WealthManagement.com writes. The panel ordered RBC Capital Markets to pay Khaleel $50,000 plus 6.1% interest from May 2016 through this month, all lawyers’ fees and Khaleel’s Finra filing fee, according to the web publication.

A spokeswoman for RBC Wealth Management, a division of RBC Capital Markets, tells WealthManagement.com that the firm is disappointed in the arbitrator's ruling and disagrees with Khaleel’s claims.

"It is important to note that the client’s accounts were profitable and that economic and market conditions caused the market value of some of Ms. Khaleel’s securities to decline,” the spokeswoman says, according to the web publication.

Finra

Earl has been in the financial services industry for 35 years and with RBC Capital Markets since 2009, according to his BrokerCheck profile.

In addition to the recent arbitration, Earl has two other customer disputes on his profile, both of them denied, and a stipulation-and-consent resolution of allegations that he had engaged in the sale of unregistered securities, which Earl claims in his profile was due to “misinformation from my employing firm at that time.”

By Alex Padalka
  • To read the Wealth Management article cited in this story, click here.