- June 7, 2019
- Ameritas Investment Corp
James F. Anderson was a Financial Advisor at Ameritas Investment Corp. in Dakota Dunes, South Dakota. James F. Anderson entered the securities industry in 2004 and worked at Ameritas Investment Corp. his entire career.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on June 3, 2019, James F. Anderson was sanctioned by FINRA, barring him from the securities industry for allegedly engaging in private securities transaction, or “selling away,” in violation of industry rules and regulations.
Specifically, the FINRA sanction states:
“Without admitting or denying the findings, Anderson consented to the sanction and to the entry of findings that he refused to provide FINRA with requested documents and information during the course of an investigation into allegations that Anderson had engaged in the purchase and sale of securities away from his member firm, without the knowledge or approval of the firm.”
For a copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2019061592601%20James%20F.%20Anderson%20CRD%204803514%20AWC%20jm.pdf
The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.
The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.
In addition to the FINRA sanction, James F. Anderson is the subject of a customer complaint, “alleging unsuitable recommendation to purchase a promissory note”, which is the conduct that gave rise to the the regulatory sanction.
For a copy of James F. Anderson’s CRD, click https://brokercheck.finra.org/individual/summary/4803514#disclosuresSection
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at firstname.lastname@example.org.