Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker James Booth (Booth), previously associated with LPL Financial LLC, has at least 34 disclosable events. These events include 31 customer complaints, 3 regulatory events, alleging that Booth recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a settled customer complaint on April 20, 2020.
Clients allege misappropriated funds.
FINRA BrokerCheck shows a final customer complaint on February 14, 2020.
On February 14, 2020, the Banking Commissioner issued an Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine, Notice of Intent to Revoke Registration as a Broker-dealer Agent and Investment Adviser Agent and Notice of Right to Hearing (Docket No. CDFR-20-8535-S) against James Thomas Booth of Norwalk, Connecticut. Also named in the action was Insurance Trends, Inc., an entity controlled by Booth. Most recently and from 2018 to 2019, Respondent Booth had been registered as a broker-dealer agent and investment adviser agent of LPL Financial LLC in Connecticut. While those registrations had previously been withdrawn, Connecticut law permits the Commissioner to initiate revocation proceedings within one year after the withdrawal becomes effective. The action alleged that, from 2013 to 2019, Booth violated the antifraud provisions in Section 36b-4(a) of the Connecticut Uniform Securities Act and engaged in dishonest or unethical practices while associated with his past two employing firms. More specifically, respondent Booth allegedly solicited firm clients to invest in outside opportunities and send their funds to Insurance Trends, Inc. The action also alleged that respondent Booth then used investor funds for his personal expenses and that he fabricated client account statements to reflect investments that were, in fact, never made. Booth allegedly misappropriated approximately $5 million in investor funds.
FINRA BrokerCheck shows a settled customer complaint on December 06, 2019.
4.Claimants alleges that over several years Booth converted their funds to support a Ponzi scheme using multiple shell companies, which claimants only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on November 07, 2019.
Claimant alleges that over several years Booth converted his funds to support a Ponzi scheme using multiple shell companies, which claimant only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on November 06, 2019.
Claimants allege that over several years Booth converted their funds to support a Ponzi scheme using multiple shell companies, which claimants only later discovered in June 2019.
FINRA BrokerCheck shows a final customer complaint on November 01, 2019.
SEC Admin Release 34-87447; IA Release 5406, November 1, 2019: The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 (“Exchange Act”) and Section 203(f) of the Investment Advisers Act of 1940 (“Advisers Act”) against James T. Booth. On October 22, 2019, Booth pleaded guilty to one count of securities fraud in violation of Title 15 United States Code, Sections 78(j)(b) and 78ff(a) before the Unites States District Court for the Southern District of New York, in United States v. James T. Booth, Crim. No. 19-cr-00699.
FINRA BrokerCheck shows a settled customer complaint on October 25, 2019.
Claimant alleges that over several years Booth converted her funds to support a Ponzi scheme using multiple shell companies, which claimant only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on October 17, 2019.
Claimants allege that over several years Booth converted their funds to support a Ponzi scheme using multiple shell companies, which claimants only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on September 30, 2019.
Claimant alleges that over several years Booth converted her funds to support a Ponzi scheme using multiple shell companies, which claimant only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on September 20, 2019.
Claimant alleges that over several years Booth converted his funds to support a Ponzi scheme using multiple shell companies, which claimant only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on September 13, 2019.
Claimant alleges that over several years Booth converted her funds to support a Ponzi scheme using multiple shell companies, which claimant only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on September 11, 2019.
Claimants allege that Booth converted their funds to support a Ponzi scheme where he used multiple\<char_lb_r>\, shell companies. Claimants discovered the alleged misconduct in June 2019.
FINRA BrokerCheck shows a settled customer complaint on September 09, 2019.
Claimant alleges that over several years Booth converted her funds to support a Ponzi scheme using multiple shell companies, which claimant only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on September 05, 2019.
Claimants allege that over several years Booth converted their funds to support a Ponzi scheme using multiple shell companies, which claimants only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on August 27, 2019.
Claimants allege that over several years Booth converted their funds to support a Ponzi scheme using multiple shell companies, which claimants only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on August 21, 2019.
Claimants allege that over many years Booth converted their funds to support a Ponzi scheme using multiple shell companies, which claimants only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on August 21, 2019.
Claimants allege that over several years Booth converted their funds to support a Ponzi scheme using multiple shell companies, which claimants only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on August 15, 2019.
Claimant alleges that Booth converted his funds to support a Ponzi scheme using multiple shell companies, which claimant only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on August 12, 2019.
Claimants allege that Booth converted their funds to support a Ponzi scheme using multiple shell companies, which claimants only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on August 09, 2019.
Claimants allege that Booth converted their funds to support a Ponzi scheme using multiple shell companies, which claimants only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on August 02, 2019.
Claimant alleges that Booth misappropriated funds by depositing her funds into an account for an entity that Booth controlled, which claimant only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on July 30, 2019.
Claimants allege that over a period of several years, Booth misappropriated funds by depositing claimants’ funds into accounts for several entities that Booth controlled, which claimants only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on July 29, 2019.
Claimant alleges that over a period of several years, Booth misappropriated funds by depositing customer’s funds into an account for an entity which Booth controlled, which claimant only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on July 24, 2019.
Customers allege that over a period of years, Booth misappropriated funds by depositing the customers’ funds into an account for an entity which Booth controlled, which customers only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on July 22, 2019.
Customers allege that over a period of several years, Booth misappropriated funds by requesting the customers to write checks out of their brokerage accounts payable to an entity which Booth controlled, which customers only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $180,000.00 on July 15, 2019.
Customer alleges that between April 2018 and January 2019 advisor solicited customer to write personal checks and also misappropriated funds from customer’s brokerage account payable to an entity that advisor controlled.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $28,500.00 on July 12, 2019.
Customer alleges that in December 2018 Booth solicited her to write a check payable to a company controlled by Booth.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $45,000.00 on July 12, 2019.
Customer alleges that in May 2019 Booth solicited her to write a check payable to a company controlled by Booth.
FINRA BrokerCheck shows a settled customer complaint on July 11, 2019.
Customers allege that during an unstated time period, Booth misappropriated funds by convincing the customers to invest in a shell company under his control.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $18,000.00 on July 10, 2019.
Customer alleges that in May 2019 Booth solicited him to write a check payable to a company controlled by Booth.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $50,651.00 on July 08, 2019.
Customer alleges that between August 2018 and May 2019, Booth caused checks to be issued from his brokerage account payable to an entity that Booth controlled.
FINRA BrokerCheck shows a final customer complaint on July 01, 2019.
Without admitting or denying the findings, Booth consented to the sanction and to the entry of findings that he converted funds, totaling at least approximately $1,000,000 that multiple customers of his gave him to invest on their behalf, he however deposited the funds into an account he controlled and, used them for his own personal use.
FINRA BrokerCheck shows a settled customer complaint on June 28, 2019.
Customer alleges that sometime after 2009, Booth misappropriated funds by convincing the customer to invest in a shell company under his control, which she only later discovered in June 2019.
FINRA BrokerCheck shows a settled customer complaint on June 06, 2019.
Customer’s allege failure to follow trade instructions, which resulted in a loss.
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. This standard applies when a registered representative is providing investment advice through making recommendations customers and covers securities transaction, investment strategies, and recommendations concerning advice on opening of an account or accounts. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Finally, the advisor must use their knowledge of the first two elements to consider reasonably available investment option alternatives and come to the conclusion that there is a reasonable basis to believe that the recommendation or advice being provided is in the retail investor’s best interest.
In addition to specific investments being recommended, under Reg BI, a broker must also understand the type of account that their client would need in order to meet their care obligations. The SEC has stated that the type of securities account an investor has can greatly affect a customers’ costs and overall investment returns. Further, different account types can offer and support different features, products, securities, or services, and account type would not be appropriately applied in a one size fits all manner.
Booth has been in the securities industry for more than 28 years. Booth has been registered as a Broker with LPL Financial LLC since 2018.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.