Jaime Michael Westenbarger of Grand Rapids Michigan a stockbroker formerly registered with Securities America Inc. and First Allied Securities Inc. has been barred by Securities and Exchange Commission (SEC) from being a stockbroker or investment adviser representative supported by findings of Westenbarger misusing investor funds. In the Matter of Jaime M. Westenbarger Administrative Proceeding File No. 3-20265 (April 19, 2021).
SEC based its decision on the state of Michigan’s sanctions against him. SEC notes that on June 24, 2020, Westenbarger was ordered to cease and desist from violating Michigan Securities Act and was prohibited from engaging in securities business in Michigan. Complaint No. 341500.
According to the Michigan Order, as a stockbroker and investment adviser representative, Westenbarger targeted two investors to buy a $200,000.00 corporate note. The customers provided Westenbarger with a check to invest. The Michigan regulator also noted that a short-term CD was offered by Westenbarger to another investor who provided him $60,000.00 to make the purchase.
The Michigan regulator states that Westenbarger did not use investors’ funds for its intended purpose. Instead of Westenbarger doing what he represented to investors, he misused their funds. Westenbarger’s expenses were paid using those investors’ funds. He violated Michigan Securities Act Section 501 for making false statements to investors relating to securities transactions.
FINRA Public Disclosure shows that Westenbarger has been identified in eleven customer initiated investment related disputes concerning accusations of his wrongdoing while employed by American Portfolios Financial Services Inc., OneAmerica Securities Inc., First Allied Securities Inc., and Securities America.
On October 6, 2020, a customer initiated investment related FINRA securities arbitration claim concerning Westenbarger’s conduct was settled for 150,0000.00 in damages founded upon allegations of the violation of FINRA rules and Michigan Securities Act. FINRA Arbitration No. 19-03015. The claim alleges breach of contract and breach of fiduciary duty relating to unit investment trust, corporate debt, and annuity transactions. According to the claim, the customer’s funds were misused after Westenbarger received their money for a corporate note. Westenbarger allegedly also told the customer to buy a variable annuity without any reason. Accusations also include unauthorized transactions and fraud.
Westenbarger is referenced in a different customer initiated investment related FINRA securities arbitration claim in which the customer requested $75,000.00 in damages based on accusations of bad investment recommendations by Westenbarger as it pertained to real estate investment trust transactions when he was employed by First Allied Securities. FINRA Arbitration No. 21-00812 (May 28, 2021).
On July 20, 2021, another customer filed an investment related FINRA securities arbitration claim regarding Westenbarger’s activities. They sought $26,000.00 in damages supported by allegations of Westenbarger providing bad advice to them regarding alternative investments, including real estate investment trusts. FINRA Arbitration No. 21-01835.
Westenbarger is also the subject of a customer initiated investment related FINRA securities arbitration claim that was resolved for $7,500.00 in damages founded upon accusations of breach of fiduciary duty and negligence as it pertained to alternative investments including real estate securities sold by Westenbarger. FINRA Arbitration No. 21-00538 (August 2, 2021).
On October 20, 2021, an additional customer initiated investment related FINRA securities arbitration claim involving Westenbarger’s conduct was settled for $85,000.00 in damages based on allegations that the customer’s funds were misused by Westenbarger in violation of Michigan Securities Act during the period that he was associated with American Portfolios Financial Services. The claim also contains accusations of breach of fiduciary duty and breach of contract relating to a real estate security and annuity.
Westenbarger was registered with Securities America between May 2, 2016, and August 14, 2019. He was discharged by Securities America for allegedly violating procedures and policies about borrowing customer funds.
