21 years with Edward Jones- ED HOOD

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Broker7's picture
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My condolences, sad situation.

MISS JONES's picture
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Yes it is a sad Story.. It's old news at this point.. The really sad part is why he took his life! WTF!
 
Miss J

Broker7's picture
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MISS JONES wrote:Yes it is a sad Story.. It's old news at this point.. The really sad part is why he took his life! WTF!
 
Miss J
 
Yeah, I agree with you.  It was last month.  He was a GP and an RL for crying out loud.  He had a great career with Edward Jones.  Maybe the pending lawsuits will bring clarity to this situation.

eddjones654's picture
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Just do a Google search on William E. Hood and you'll get part of the story.
 
I'm sure the regulators are going to try the employer for failure to supervise. 

Broker7's picture
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654,
I googled..WOW..not what I expected from Ed. He seemed like a really genuine guy.  I guess he was a little more money motivated than the rest of us.  I wish his family well.
 
 

bspears's picture
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I just hope the innocent clients are made whole. 

Indyone's picture
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It's amazing about how the nicest guys end up being thieves...

bspears's picture
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I'm not going to bash Jones "truce", but having sat through sessions were long time vets will tell you to do things in which Jones Corporate is singing exactly the opposite, shows to me compliance is letting things pass through or slip through. 
I was in one meeting at a time when B shares were being drug through the coles, where the vet told us how easy this business was, and just "put 100k into American Balanced , B share."  We all laughed thinking he was joking.  He wasn't.   Actually got defensive when I stated compliance wouldn't let that fly, "I've been doing that same thing for years! I did it today!!" 

MISS JONES's picture
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I agree.. Not everyone is on the same page here at Jones.. But 'Oh well', That is at every firm.. I do what is right for my clients and try not to worry too much about the people giving our firm a bad name.  i.e. Ed Hood.
 
Miss J

Spaceman Spiff's picture
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It is amazing what you can get to go through a compliance department with enough signatures from the clients.  I've never heard a conversation like spears was a part of at a Jones meeting, but it doesn't suprise me.   We get these red pieces of paper in branch mail every so often telling about people who got fired for this or that.  You can usually tell that it's someone desparate doing something stupid.  
 
Did anyone else find anything strange about the Tennessean's article.  Bell, the accountant, said he was innocent and only acting on Hood's instructions.  Innocent!?   Really??  He didn't know that Ed was stealing money?  How come Bell failed to file the income taxes?  Could it be because they would have shown all of the transactions and liquidations? 
 
Where were the poor woman's kids.  If they are making the arguement that she didn't know what she was doing when Ed had her sign paperwork, why didn't they have power of attorney?  Or at least duplicate copies of statements.  If my mom was in a nursing home  because she couldn't take care of herself anymore, and had a million bucks, I'd make darn sure I knew exactly what was happening in those accounts.  Greed kicks in after you learn facts like that and you start making plans for that money.  I've had discussions with benes over $5000 that got pretty heated.  I can't imagine what the conversation was like when the kids suddenly realized that $1.7 million was missing from mom's accounts. 
 
From his own actions I would make the assumption that Ed was guilty.  No contest.  But I don't think his family should be left with the thought that he was the only one at fault.  I do hope Jones makes the family whole.  With a settlement, not just because some arbitration judge tells them they have to. 

Roadhard's picture
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My understanding was that the CPA was also the trustee!  If that is so once again who's watching the chicken coop?  I feel bad for Ed's family--Ed should have faced the music.
Greed can be so over powering to even the best of people.  I just don't think Jones should just write out a check for the full amount of losses and interest to the family--NOW!

Roadhard's picture
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Correction to my last post, they should write out a check--sorry about that!

Spaceman Spiff's picture
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I agree.  Settle with the family.  The arbitration case will most likely only prove that Ed was doing something wrong. 

 
My point was that Ed and EDJ are not the only ones "not watching the chicken coop."  Yes, Ed stole a lot of money that needs to be repayed.  The son deserves everything his mom was supposed to have left him.  But, I don't think that simply because Jones has deep pockets that we should be the only ones to make him whole.  That accountant cannot be completely innocent in this.  Maybe the arbitration case will prove me wrong.  We'll have to wait and see. 

eddjones654's picture
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spiff,
 
This isn't the first time NASDR/FINRA will be reviewing a case of failure to supervise offense by your employer.  Whomever the "branch manager" (a.k.a. FSD) is or was for that region will be let go or transferred to another St.L job.  Happens everytime.  The worst part is that not only all of the broker's accounts will need to be reviewed but the oversight of all the BMs/FSDs that were reveiwing Mr. Hood's practice should come under investigation too.
 
Sure other firms have this happen, but they haven't run ads claiming their "purity" nor do other firms have rookies teaching rookies. Perhaps I over simplified your previous role at  EJ a tad much but fresh from college and teaching "newnew" seems to describe what you were doing. 
 
Hope you enjoy your turkey.....if you qualified for one.

troll's picture
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eddjones654 wrote:spiff,
 
This isn't the first time NASDR/FINRA will be reviewing a case of failure to supervise offense by your employer.  Whomever the "branch manager" (a.k.a. FSD) is or was for that region will be let go or transferred to another St.L job.  Happens everytime.  The worst part is that not only all of the broker's accounts will need to be reviewed but the oversight of all the BMs/FSDs that were reveiwing Mr. Hood's practice should come under investigation too.
 
Sure other firms have this happen, but they haven't run ads claiming their "purity" nor do other firms have rookies teaching rookies. Perhaps I over simplified your previous role at  EJ a tad much but fresh from college and teaching "newnew" seems to describe what you were doing. 
 
Hope you enjoy your turkey.....if you qualified for one.Plenty of other firms, in all channels, have been guilty of not sufficiently supervising a big producer.  It's the whole issue of greed winning out over ethics, and regrettably no firm is immune.

Roadhard's picture
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Spiff, I agree--the CPA needs to pay up too--along with some jail time too.  This is a sad story all the way around.  Though I left Jones 7 months ago--I feel sorry also for those young advisors who heard their regional leader get up in front of them at the meetings and say do what's best for the clients always.  Who do you learn to trust or believe?
 
Though quite a few of us give all the current Jones advisors some prodding for still being there---we really do not wish anyone ill will. 
 
This is a good time to wish all my fellow advisors from all firms a very Happy Thanksgiving.
May you enjoy many more happy and healthy holidays with your friends and family.

Broker24's picture
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joedabrkr wrote: eddjones654 wrote:spiff,
 
This isn't the first time NASDR/FINRA will be reviewing a case of failure to supervise offense by your employer.  Whomever the "branch manager" (a.k.a. FSD) is or was for that region will be let go or transferred to another St.L job.  Happens everytime.  The worst part is that not only all of the broker's accounts will need to be reviewed but the oversight of all the BMs/FSDs that were reveiwing Mr. Hood's practice should come under investigation too.
 
Sure other firms have this happen, but they haven't run ads claiming their "purity" nor do other firms have rookies teaching rookies. Perhaps I over simplified your previous role at  EJ a tad much but fresh from college and teaching "newnew" seems to describe what you were doing. 
 
Hope you enjoy your turkey.....if you qualified for one.Plenty of other firms, in all channels, have been guilty of not sufficiently supervising a big producer.  It's the whole issue of greed winning out over ethics, and regrettably no firm is immune.
 
A compliance department can only do so much, regardless of the firm.  All oversight is electronic, so if you simply get people to write checks to the wrong places, etc., I'm sure it can be done.  I don't feel that these isolated situations are ever the TRUE fault of the B/D (as far as major firms are concerned), but usually a reflection of the individual broker.  I would say, without hesitation, that all major B/D's are trying to do what's in the client's best interest (I say major B/D's, as there are still little chop shops out there swindling old people).  These are always sad situations, and never end well.

compliancejerk's picture
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Broker24 wrote: 
A compliance department can only do so much, regardless of the firm.  All oversight is electronic, so if you simply get people to write checks to the wrong places, etc., I'm sure it can be done.  I don't feel that these isolated situations are ever the TRUE fault of the B/D (as far as major firms are concerned), but usually a reflection of the individual broker.  I would say, without hesitation, that all major B/D's are trying to do what's in the client's best interest (I say major B/D's, as there are still little chop shops out there swindling old people).  These are always sad situations, and never end well.
 
boy has spiffy and his ilk edumacated you well.  I didn't know you had spent any time doing compliance?  If all oversight is electronic then there would be no need for a Compliance department.  So you are awarethere is a big difference between local supervision and HO oversight. 
 
Just as an excercise check out the top GPs, RL or even the rep down the street at your firm on FINRA and see what sort of compliant history they have... some may be just a nasty as those employed at the "little chop shop". 

Roadhard's picture
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Reading into the story it would be hard to track...CPA sets himself up to be trustee of her trust...FA sells stocks other investments over several years and has checks deposited into a trust in her name.   That is where the Field Services Rep at Jones would be able to tract to.  Then the trust sent checks out to other accounts at other financial institutions that really belong to the CPA and Ed.  The failure to supervise would have been when too much was being taken out and it not be tracked--however, you and I don't know if their was a field servies inquiry over the past year concerning this.
 
If nothing else it will fall on the shoulders of Edward Jones for the losses and failure to supervise--but if someone really wants to commit a crime--it is hard to prevent it.   What still gets me is that everyone who ripps off a client thinks they are going to get away with it or that it will never be discovered. 

noggin's picture
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There is more to the story than you know.

troll's picture
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noggin wrote:There is more to the story than you know.That's a mighty provocative statement.....are you going to share, or at least drop a hint?

noggin's picture
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I wish I knew more and some days I wish I knew less.  I will just say it is a lot larger than 1 account.

Indyone's picture
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That's what the lawyers are saying...
 
http://edhoodfraud.homestead.com/
 

troll's picture
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noggin wrote:I wish I knew more and some days I wish I knew less.  I will just say it is a lot larger than 1 account. I hear ya....wow so do I hear ya after 15 years at a few firms.This can be a great business, and it can be a shitty business when people let greed get the better of them.You just keep doing the right thing....so you can look that guy in the mirror right in the eye each morning....and you'll be fine.Be Thankful.

troll's picture
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MISS JONES wrote:I agree.. Not everyone is on the same page here at Jones.. But 'Oh well', That is at every firm.. I do what is right for my clients and try not to worry too much about the people giving our firm a bad name.  i.e. Ed Hood.
 
Miss JIf you keep that mindset, you'll be fine no matter what name is on the front door.  Keep it up!

troll's picture
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Indyone wrote:That's what the lawyers are saying...
 
http://edhoodfraud.homestead.com/
 Oh wow...if they are even half right in their allegations this could get ugly for the boys and girls in DesPeres, MO.

Broker24's picture
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compliancejerk wrote: Broker24 wrote: 
A compliance department can only do so much, regardless of the firm.  All oversight is electronic, so if you simply get people to write checks to the wrong places, etc., I'm sure it can be done.  I don't feel that these isolated situations are ever the TRUE fault of the B/D (as far as major firms are concerned), but usually a reflection of the individual broker.  I would say, without hesitation, that all major B/D's are trying to do what's in the client's best interest (I say major B/D's, as there are still little chop shops out there swindling old people).  These are always sad situations, and never end well.
 
boy has spiffy and his ilk edumacated you well.  I didn't know you had spent any time doing compliance?  If all oversight is electronic then there would be no need for a Compliance department.  So you are awarethere is a big difference between local supervision and HO oversight. 
 
Just as an excercise check out the top GPs, RL or even the rep down the street at your firm on FINRA and see what sort of compliant history they have... some may be just a nasty as those employed at the "little chop shop". 

Don't make this a stupid Jones thing. My knowledge of compliance has nothing to do with Jones. Someone very close to me spent 25 years at NASD regs, breaking up chop shops, infiltrating bad branches (mostly regional B/D's), etc. I'm no expert, I just grew up being schooled on what happens in these situations. My point was that regardless of the firm, unscrupulous individuals exist everywhere, and can orchestrate scams anywhere. That's why they are scams. This guy could have done this at Jones, AGE, ML, etc. If you know how compliance works, there are always ways to work around it.    I'm not defending Jones. Ultimately, every firm must stand behind all of its' reps. But every firm will also try to point out that it was not the firm's doing, but the work of a rogue broker (which is most often the case). At the end of the day, Jones' back is against the wall on this. It's like the toy companies - they did not intentionally put lead in their toys from China, they were just not thorough enough in their review of their overseas suppliers.

newnew's picture
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excellent point

Broker7's picture
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It's not a stupid E Jones thing, it is a stupid registered rep thing.  It just so happens that he was a General partner and a Regional Leader at the formentioned company.  Such a situation is a shame not only for Jones, but for all of us in the industry.

bspears's picture
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Those GP's just can't get enough...

EdJehovah's picture
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  Sad, very sad.  It could happen at any firm.  I wonder what the last thought that ran across his mind....just before that bullet?   KOOOOLAID....GREEN KOOOLAID.

Broker24's picture
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EdJehovah wrote:  Sad, very sad.  It could happen at any firm.  I wonder what the last thought that ran across his mind....just before that bullet?   KOOOOLAID....GREEN KOOOLAID.
 
Dude, that's pretty cold.  Don't turn a tragedy like that into some anti-Jones thing.

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Broker24 wrote:EdJehovah wrote:  Sad, very sad.  It could happen at any firm.  I wonder what the last thought that ran across his mind....just before that bullet?   KOOOOLAID....GREEN KOOOLAID.
 
Dude, that's pretty cold.  Don't turn a tragedy like that into some anti-Jones thing.
 
A 21 year vet/GP had no complaint until this year (according to FINRA)???? I'm sure there will be a number of FSPEND wire to review especially since there are 2 complaints with FINRA both for elderly clients.
 
Yes this type of behavior occurs at other firms too.  It is your santimonous mantra of we always do best by our clients that we (on the "dark-side") take issue with.  In other words your employer (and colleagues) are is NO different from another firm so don't hold yourself out that you are.
 

HurryUpKC's picture
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Unfortunately, Edward Jones has still not settled with the several families involved in this Tennessee fiasco.  Our family is involved.  Not only is all the money gone but Edward Jones adds insult to injury by stalling and causing undue stress on these elderly families.  Very few of them will be alive when it is settled.  What a way to live the last few of your Golden Years.
Karen

bspears's picture
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Sorry to hear about your loss.  Unfortunately, your family was scammed by one of the biggest scammers in the industry.  Buyer beware.....considering this person was a GP, you would think the company would try to make things right...but...this is Jones your talking about.  I would ask Spiffy why his firm continues to make these families suffer. If I were you Karen, I would give a call to CBS and 60 minutes...they love these sort of things.

Indyone's picture
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That's just a shame, although I'm sure you can chalk that up to advice EDJ is getting from their attorneys.  Those attorneys are paid to carefully craft a settlement that works for all parties, and given the complications, I'm not surprised it is taking awhile.  You and your family have my sympathy as you work through this mess.
 
...and given what I saw on EIA sales, you can add Dateline to the list...I'm sure they'd be intrigued by a story like this...

noggin's picture
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HurryUpKC wrote:Unfortunately, Edward Jones has still not settled with the several families involved in this Tennessee fiasco.  Our family is involved.  Not only is all the money gone but Edward Jones adds insult to injury by stalling and causing undue stress on these elderly families.  Very few of them will be alive when it is settled.  What a way to live the last few of your Golden Years.
Karen

I understand the situation more than many others. It certainly factored in my decision to leave Ed Jones. It is my hope that my ex firm makes you and your family as whole financially as possible. It is a very sad situation in all aspects.

Roadhard's picture
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Every $$$$ your family lost should be repaid--period...Jones has the $$$$ to make that happen and get this over with!  Work with your attorney--but go on the attack if necessary!  Sue for all the lost interest for everyday they fail to pay all the money back.
I would say good luck--but you will win this if you are willing to wait it out!

troll's picture
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Ed is dead? What about Ted? 

HurryUpKC's picture
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Thanks so much.  I felt like the $$ that were lost plus interest should have been returned immediately; Even from the perspective of good faith for future lawsuits!  But she hasn't gotten a dime...I can't remember what year Ed died, but they knew even before that. I know that they will pay eventually, but not soon enough to help this elderly woman live any kind of life.  She's in her late 80's.
Karen

bspears's picture
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Here, let me be a good citizen today......
Contact UsADDRESS: 60 Minutes 524 West 57th St. New York, NY 10019 EMAIL: 60m@cbsnews.com PHONE: (212) 975-3247

bspears's picture
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As I close my eyes, I can see Steve Kroft or Katie Couric sitting with the weak, 80 year old, discussing how her and her late husband trusted Jones and Ed Hood to protect their assets.  How he stated they were the best firm in the industry and he even stopped by their house back in the 80's.  They do it the ol fashioned way,,,face to face....She is having to get donations from her church to eat and pay her utilities.  "Mam, how much of your money was lost to the EDJ broker?"  1.2 million....my husband worked 3 jobs for 50 years to save that much...I'm just glad he's not here to see this...Katie--Did you know the MP of EDJ collects vintage cars and makes, reportedly, 8million a year.  How does that make you feel? Do you feel the MP is doing enough to make things right with you?  Have you seen any money from EDJ?  How are you paying your bills right now?  Are you still getting your "Meals on Wheels" for lunch?

bspears's picture
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If I was Katie, I would take the 80+ year old(if able) by old Jims home and doorknock him.  Right at dinner time...ask him about the lawsuit...see if he could give the lady some scraps off his dinner table...even see if she could go on one of the diversification trips EDJs gives out...maybe sit in the luxury box at Busch (Inbev) stadium for cubs cardinals game...Her and her husband were too damn busy for 50 years working to go to a game...Karen...IF you don't contact 60 minutes...I willl.

Spaceman Spiff's picture
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HurryUpKC wrote:
Thanks so much.  I felt like the $$ that were lost plus interest should have been returned immediately; Even from the perspective of good faith for future lawsuits!  But she hasn't gotten a dime...I can't remember what year Ed died, but they knew even before that. I know that they will pay eventually, but not soon enough to help this elderly woman live any kind of life.  She's in her late 80's.
Karen
Umm...I know I may be hitting a hornet's nest with a stick here, but what do you mean you don't remember what year Ed died?  You said you had family involved in this situation.  You don't know the details?  That comment seems kind of strange to me.  Before you take Ms. spears advice on calling 60 minutes, you might want to get your details ironed out. 
 
Now, as I've said before in this post, if a Jones GP stole money from someone, I believe it should be paid back and I'm confident at some point in the future it will be.  In the meantime I'm sure the lawyers are battling it out and trying to figure out exactly how much was stolen, by whom, and who is ultimately responsible for repayment. 

Spaceman Spiff's picture
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bspears wrote:If I was Katie, I would take the 80+ year old(if able) by old Jims home and doorknock him.  Right at dinner time...ask him about the lawsuit...see if he could give the lady some scraps off his dinner table...even see if she could go on one of the diversification trips EDJs gives out...maybe sit in the luxury box at Busch (Inbev) stadium for cubs cardinals game...Her and her husband were too damn busy for 50 years working to go to a game...Karen...IF you don't contact 60 minutes...I willl.
 
At the same time she could go visit all of the other brokerage firms, including LPL, who have had this kind of thing happen to them.  I'm sure the FINRA files are full of situations just like this one.  That way you can make it an informative piece on the entire industry, maybe take us all down in one fell swoop.  Why just limit it to EDJ? 

footsoldier's picture
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Spiffy-
 
Even you the staunchest Jones supporter on these forums has to be scratching your head wondering why the GP's aren't settling (Hood case) this one to get it out of the way and do what every firm in the industry does;
 
Pay and deny any wrongdoing. I am sure LPL has done it.
Many times just like Jones.
 
Wow...now I am a drone of LPL. What color is my drink?

Gone Indy's picture
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Spiff,
 
You are one of the few EDJoners on this forum for which I have any respect but I really do think that you should stay out of this conversation.  Trying to justify the actions of the GPs in this tragic situation is only making you look silly.

bspears's picture
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About time you showed up Spiffy...what were you doing...flippin bonds...anyway...the point is your crappy ass firm runs around saying.."we're the best...we're the only firm who does the right thing for the client"...bullshit...the curtain needs pulled back and you need your ass kicked..and maybe you'll have a little bit of humility and come out of it just a little better than you were before.  "WELL...hell....everyone else is screwing and stealing their clients money...so why can't we"...mentallity doesn't work.  It wouldn't suprise me if there's a ton more of this happening at your firm. 

noggin's picture
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Spaceman Spiff wrote:HurryUpKC wrote:
Thanks so much.  I felt like the $$ that were lost plus interest should have been returned immediately; Even from the perspective of good faith for future lawsuits!  But she hasn't gotten a dime...I can't remember what year Ed died, but they knew even before that. I know that they will pay eventually, but not soon enough to help this elderly woman live any kind of life.  She's in her late 80's.
Karen
Umm...I know I may be hitting a hornet's nest with a stick here, but what do you mean you don't remember what year Ed died?  You said you had family involved in this situation.  You don't know the details?  That comment seems kind of strange to me.  Before you take Ms. spears advice on calling 60 minutes, you might want to get your details ironed out. 
 
Now, as I've said before in this post, if a Jones GP stole money from someone, I believe it should be paid back and I'm confident at some point in the future it will be.  In the meantime I'm sure the lawyers are battling it out and trying to figure out exactly how much was stolen, by whom, and who is ultimately responsible for repayment. 
 
Now, Spiff c'mon man. The facts are HE DID STEAL FROM CLIENTS.

HurryUpKC's picture
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Thanks so much for the great advice/encouragement/ideas.  I have been so frustrated by this.  We got a "bill" from the lawyer, who has not hired the first expert witness or done anything but file and keep us informed...for , GET THIS...$75,000.  and they added..."so far"  So I am seriously considering pulling the Fox News, Dateline, etc. card.
 

Spiffy, I am going from memory on this and could go back and look up all the dates, but why.  I hope you understand that this was input I was giving after reading your talk about the issue.  I thought you guys would want a first hand report of the situation.
 
Thanks again...
Karen

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B24
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For $75K, I am surprised your lawyer has not instructed you about discussing the lawsuit on open forums.  I am also surprised that part of the deal will not include an agreement not to go public.  I am also surprised that you stumbled upon this forum.  I am also surprised that your facts are so wrong about the case.  Remarkable.
 
Spears, Spears, Spears.  What SHALL we do with you?

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