Release Date, 2021
Salem — The Oregon Division of Financial Regulation issued $220,000
in civil penalties, and Raymond James Financial Services, Inc. agreed to pay
$123,279 in restitution to the victims of the excessive
trading practices of Gary Dodds.
Dodds, a stock broker for Raymond James Financial Services, conducted churning,
a method of excessive trading to receive additional commissions, on several
of his clients’ accounts from 2016 to 2018. The division’s investigation revealed
Dodds made unsuitable recommendations and sales of securities for his clients
and failed to maintain proper documentation of his trading activities. The
division also learned that Raymond James Financial Services was aware of his
actions, but did not take adequate corrective steps.
Under Oregon law, securities professionals can be held liable for financial
exploitation of vulnerable people and investment firms are expected to supervise
their representatives to prevent churning and similar violations. The division
issued a cease-and-desist order, and assessed civil penalties of $100,000 against
Dodds. As part of the order, Dodds agreed to not apply for any financial services
license or registration in Oregon for five years. A civil penalty of $120,000
was also assessed against Raymond James Financial Services, and the company
agreed to provide restitution to five Bend-area seniors totaling $123,379.
“Securities and financial professionals first concern should be the customer,
not the commission,” said Division of Financial Regulation Administrator TK
Keen. “Investment firms also have a duty to supervise advisors in a way that
prevents churning, excessive trading, and other violations of Oregon law.”
The division has three tips to help Oregonians avoid these types of fraudulent
- Be aware of all activities in your accounts, especially when trades
made on your behalf provide commissions.
- Find out if your securities professional is a fiduciary. A fiduciary
must act in your best interest at all times. Visit the division’s choosing
a financial professional website to learn more and to check a license.
- Ask questions. It is important to learn about all commissions, fees,
and costs associated with buying, selling, and servicing your investment
To learn more about financial services, investments, and protecting yourself
from fraud, visit the division’s financial
services for consumers page.
The outcome of this investigation is an example of what can happen when people
report possible financial exploitation of a senior. Oregon Adult Protective
Services reported the incident, which prompted the division’s investigation.
The division encourages everyone to report potential financial exploitation
of vulnerable people by visiting its protect yourself and others from fraud
If you need to report financial exploitation or file a complaint on a financial
services company or professional, call the division’s advocacy team at 888-877-4894
(toll-free) or email email@example.com.
About DCBS: The Department of Consumer and Business Services
is Oregon's largest business regulatory and consumer protection agency. For
more information, visit www.dcbs.oregon.gov.
About Oregon DFR: The Division of Financial Regulation
is part of the Department of Consumer and Business Services, Oregon’s largest
business regulatory and consumer protection agency. Visit www.dcbs.oregon.gov and http://dfr.oregon.gov/Pages/index.aspx .