James Glover Settles Charges with FINRA Accepting a Ban From the Securities Industry

James R. Glover reached a settlement with the Financial Industry Regulatory Authority (FINRA) resulting in a permanent bar from the securities industry.  Glover failed to appear and participate in FINRA’s investigation of his securities activities.

The FINRA complaint alleges that while Glover was employed by Signator Investors, Inc. (Signator), Glover misappropriated customer funds and sold unregistered securities products in violation of the securities laws.

From 1998 through May 2012, Glover was associated with Signtor.  During this time, it has been alleged that Glover sold interests in private placements, limited liability companies, and real estate related ventures.  Glover’s CRD lists that Glover is also employed by GW Financial Group, Inc.  In addition to FINRA’s sanctions against Glover, at least 25 customer complaints have been filed against Signator for the firm’s failure to supervise Glover’s business activities.  Nearly all of the customer complaints accuse Glover of selling fraudulent real estate related securities and of mishandling the customer’s accounts.

The claims against Glover involve allegations of “selling away.”  Selling away occurs when a securities broker solicits investors to invest in securities that were not approved by the broker’s affiliated firm or recorded on the firm’s books and records.  Selling away is prohibited under the FINRA rules, particularly FINRA Rule 3040, as well as other securities laws.  The most common securities sold away from brokerage firms are private placements and promissory notes.  In selling away cases the investor is never aware that the broker is acting outside of normal securities channels.  In many cases, the broker will create false account statements or confirmations and employ other devices to cover up the illegitimacy of the investments.

Signator also conducted its own internal investigation into Glover’s securities sales and found that that Glover converted client funds and made inappropriate sales recommendations.  The firm is still investigating the full extent of Glover’s activities.

The attorneys at Gana LLP are experienced in investigating claims of financial fraud.  Our attorneys can help you detect and uncover suspicious activity in your accounts.  Our consultations are free of charge and the firm is only compensated if you recover.