Last Updated: November 2024 (Lantana, Texas)
Shaun Hayes Investigation Summary
Here’s what you need to know about Lantana, Texas, stockbroker Shaun Hayes:
- Name: Mr. Shaun Eugene Hayes
- Current Employer: Not Currently Registered as a broker, not currently registered as an Investment Advisor
- Previous Firms: Merrill Lynch Pierce Fenner & Smith, AXA Advisors, FQI Capital Management, McElhenny Sheffield Capital Management
- Function: Former registered broker, former Registered Investment Advisor
- Aliases: Shaun E. Hayes
- Primary Location: Lantana, Texas
- CRD 4963876
- Can Shaun E. Hayes be sued in FINRA arbitration: Yes
- Sanctioned by FINRA: No
- Sanctioned by Texas State Securities Board: Yes
- Largest Customer Settlement or Award: $146,882
Discuss your case with experienced investment fraud lawyer Bob Rex at (877) 224-3199 for a free consultation.
Did You Lose Money With Shaun Hayes As Your Stockbroker?
In 2/2023 a customer of FQI Capital Management was paid $146,882 to resolve allegations that Shaun E. Hayes had made a change in the customer’s investment strategy without consulting with the clients. The investments at issue included exchange traded funds (ETNs) and exchange traded notes (ETNs).
In 5/2023 a customer of McElhenny Sheffield Capital Management was paid $30,000 to resolve allegations that Hayes traded their account without authorization, failed to disclose material facts and managed the account outside of authorized risk parameters.
Most recently, in 6/2024 a customer of McElhenny Sheffield Capital Management and FQI Capital Management was paid $90,000 to settle a case brought in San Bernandino County, CA, alleging that between Oct 2017-March 2023, Hayes breached his fiduciary duty, was negligent, violated California Corps Code 25401 and committed securities fraud.
Hayes Sanctioned by Texas Securities Regulators
On 11/12/2024 the Texas State Securities Board (TSSB) reprimanded Hayes and Hayes agreed not to reapply for registration with the Texas Securities Commissioner as a dealer, investment adviser, agent of a dealer or an investment adviser until after April 1, 2025, and to abide by additional supervisory requirements. In Consent Order IC-24-SUS-05, the TSSB made the following findings:
- Hayes trading strategy included complex and risky products intended for sophisticated investors
- Hayes implemented this strategy in certain client accounts for which the strategy was not suitable
- Hayes utilization of the strategy in accounts of clients with conservative and moderately conservative risk tolerances was unsuitable and constitutes an inequitable practice in rendering services as an investment adviser representative.
Firms Have a Duty to Supervise their Financial Advisors (FINRA Rules 3110 & 2090)
Brokers and their firms have a duty to comply with the FINRA suitability rule which requires that they have a reasonable basis to believe that a recommendation is suitable for the customer.
Allegations of Broker Misconduct Against Shaun Hayes
Customers of Shaun E. Hayes have alleged the following wrongdoing in connection with the handling of customer accounts:
- Changed investment strategy without consulting clients
- Unauthorized trading
- Violated California Corp. Code 25401
- Managed account outside authorized risk parameters
- Failed to disclose material facts
Other Cases Involving Unauthorized Trading
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
Recover Your Investment Losses Now With Rex Securities Law
If you have suffered investment losses in an account handled by Shaun E. Hayes, contact us for a complimentary consultation with an experience securities lawyer to learn how you may be able to recover damages through FINRA arbitration.
With offices in Boca Raton, FL and Austin, TX, stockbroker fraud attorney Bob Rex provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers, financial advisors and broker dealers.
If you have questions about how your account has been handled, call (877) 224-3199 to speak with an experienced securities attorney at no cost to you.
Most cases are handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
