Arbitrators award client of former adviser $875,000

A Finra arbitration panel has awarded claimants in a complaint against former broker and former investment adviser Clyde Mick Jones $625,000 in compensatory damages and $250,000 for legal fees. From November 2008 through September 2016, Mr. Jones had been a registered investment adviser with Rubicon Investment Management & Analytics, in San Antonio, Texas. He began his securities career at Bache in 1977, and worked at several firms through 2007, when he gave up his securities license. At times, arbitration panels of the Financial Industry Regulatory Authority are asked to handle cases involving investment advisers. While the claimant in the case — Nola Lanell Jenkins, who was acting as trustee of the Kathryn Childress Irrevocable Trust — also sought relief from Rubicon and Scottrade, which served as the RIA's custodian, the panel did not hold them liable for the award. Ms. Jenkins alleged violations of Texas Securities Act, violations of equitable principles of trade and fair dealing, supervision violations, breach of fiduciary duty, negligent training and supervision, and participatory and vicarious liability. Specifically, she alleged that Scottrade, Rubicon and Jones made unsuitable investments, concentrating the portfolio in small cap and penny stocks, and that Mr. Jones failed to rebalance the portfolio to reduce risk and volatility despite multiple requests.