James F. Anderson of Dakota Dunes South Dakota a stockbroker formerly associated with Ameritas Investment Corp. has been referenced in a customer initiated investment related arbitration claim in which the customer requested $2,423,000.00 in damages supported by allegations that (1) the customer had been inappropriately sold promissory notes as they were neither registered nor exempt from securities registration requirements (2) misleading statements were made by the stockbroker pertaining to the risks or status of these securities and (3) Ameritas neglected to supervise the stockbroker’s activities. Financial Industry Regulatory Authority (FINRA) Arbitration No. 19-02050 (Aug. 19, 2019).
This is not the first time that Anderson has been referenced in a customer initiated investment related dispute concerning accusations of the stockbroker’s improprieties in the securities industry. Particularly, FINRA Public Disclosure reveals that Anderson is referenced in a customer initiated investment related arbitration claim where the customer sought $400,000.00 in damages based upon accusations that securities transactions were effected without the securities broker dealer’s knowledge, and the customer was poorly advised about promissory notes purchased because of Anderson. FINRA Arbitration No. 19-00933 (Apr. 16, 2019).
FINRA Public Disclosure reveals that Anderson is also the subject of at least two FINRA disciplinary actions. Particularly, he was sanctioned by the regulator based upon allegations of violating FINRA Rule 3270 by engaging in an outside business activity involving his undisclosed and unauthorized sale of equity indexed annuities while registered with Ameritas. Anderson was subsequently barred from associating with any FINRA member in any capacity founded on accusations that the stockbroker refused to provide information and documentation to FINRA personnel during the time that he was under investigation. Letter of Acceptance Waiver and Consent No. 2019061592601 (June 3, 2019).
According to the AWC, FINRA sought to determine if Anderson was taking part in a private securities transaction without both disclosing it to Ameritas and receiving permission from the securities broker dealer. On February 25, 2019, he was contacted by the regulator with instructions to provide information in this respect. FINRA received word from Anderson’s legal counsel that the stockbroker refused to provide any information and documentation in response. Anderson violated FINRA Rules 2010 and 8210 for failing to cooperate in the investigation.
Ameritas discharged Anderson on February 11, 2019 supported by its internal investigation’s findings of promissory notes and indexed annuity sales effected by the stockbroker away from Ameritas in contravention of the securities broker dealer’s rules.
