Investors Claim Waddell Reed Provided Bad Investment Advice
Donald Logan of Silverdale Washington a stockbroker registered with Waddell Reed Inc. is the subject of a customer initiated investment related arbitration claim which was settled for $15,000.00 in damages based upon accusations that the customer was poorly advised by Logan as it pertained to a variable universal life insurance policy that the customer purchased in June of 2018 when Logan was associated with Waddell Reed. Financial Industry Regulatory Authority (FINRA) Arbitration No. 19-03479 (Mar. 10, 2020).
In February 2019, FINRA Public Disclosure indicates that Logan was fined $25,000.00 and suspended for eighteen months from associating with any FINRA member in any capacity supported by findings which included that trades had been effected in customer accounts on a discretionary basis by Logan without him obtaining written permission from the customer or the securities broker dealer. Letter of Acceptance Waiver and Consent No. 2015046378601 (Feb. 5, 2019).
According to the AWC, between September of 2014 and September of 2018, 365 trades were effected in 42 Waddell Reed customer accounts by Logan on a discretionary basis when he did not possess any written authorization from the securities broker dealer or its customers. FINRA stated that he violated NASD Rule 2510(b) and FINRA Rule 2010 through his unauthorized exercise of discretion. The regulator stated that at least eleven transactions had been executed without authorization in violation of FINRA Rule 2010. Customers were also advised by Logan to sign incomplete or blank documents which he intended to later complete to effect securities transactions. This was also a violation of Rule 2010.
FINRA Public Disclosure also reveals that Logan is referenced in four more customer initiated investment related disputes containing allegations of his wrongdoing while associated with securities broker dealers including Waddell Reed and Edward Jones. On October 9, 2015, a customer initiated investment related complaint involving Logan’s conduct was settled for $22,721.00 in damages based upon allegations that the Edward Jones customer was erroneously led by Logan to believe that the premiums on the customer’s AG Securities Survivor GUL II policy would be covered by virtue of the returns generated on the customer’s investments.
On January 23, 2019, a customer filed an investment related complaint involving Logan’s conduct in which the customer requested $30,697.00 in damages based upon allegations of the Waddell Reed customer being misled by the stockbroker regarding a variable universal life insurance policy and there being unauthorized changes made to the customer’s policy. On May 14, 2019, another customer filed an investment related complaint involving Logan’s conduct in which the customer requested $30,697.00 in damages based upon allegations of forged variable universal life insurance documentation.
Logan is also referenced in a customer initiated investment related complaint which was resolved on September 9, 2019 for $7,795.14 in damages founded on accusations that the customer was provided with bad recommendations concerning a long-term care policy during the time that Logan was employed by Waddell Reed. According to the complaint, the customer was exposed to unnecessary and unwarranted tax consequences because of acting on the stockbroker’s advice of using individual retirement account funds to pay premiums.
Logan was discharged by Edward Jones on July 1, 2015 based upon allegations of his unauthorized exercise of discretion. He was discharged by Waddell Reed on September 6, 2018 supported by accusations that he possessed signed but otherwise blank or incomplete documents and that he altered documentation which had been previously signed by its customers.