James Thomas Booth of Norwalk Connecticut a stockbroker formerly registered with LPL Financial LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Booth converted funds belonging to customers of the securities broker dealer. Letter of Acceptance Waiver and Consent No. 2019062787101 (July 1, 2019).
According to the AWC, FINRA’s investigation regarding Booth’s possible theft of customer funds came by way of LPL Financial LLC’s notification of Booth’s termination. Specifically, FINRA Public Disclosure reveals that Booth had been discharged by LPL Financial LLC on May 30, 2019 based upon accusations that Booth admitted to having misappropriated funds from customers beginning at a time he was employed by a prior securities broker dealer. Allegedly, funds from customers had been utilized by Booth to address his personal expenses and business needs when this was unrelated to customers’ investments.
The AWC stated that customers provided Booth nearly $1,000,000.00 in funds as part of a purported investment arrangement. Those customers expected their funds to be invested by Booth on their behalf; however, the investments were never made. Rather, customers’ funds had been deposited by Booth into one of his accounts where he began utilizing the customers’ funds for his own benefit. FINRA noted that during this time, Booth was prohibited under FINRA Rule 2010 and 2150(a) from improperly utilizing customers’ funds or securities. FINRA found Booth’s misappropriation of the customers’ funds to be violative of FINRA Rule 2010 and 2150(a). Consequently, Booth was barred from the securities industry by FINRA.
FINRA Public Disclosure confirms that Booth is referenced in four customer initiated investment related disputes containing allegations of his violative conduct while employed with LPL Financial LLC and Cadaret Grant Co. Inc.. In particular, a customer filed an investment related complaint regarding Booth’s activities where the customer sought unspecified damages supported by accusations that while Booth was employed by Cadaret Grant, the customer was placed into an investment that failed to be suitable for the customer given the customer’s financial profile or goals for investing. Another customer filed an investment related complaint involving Booth’s conduct in which the customer requested $23,502.00 in damages founded on allegations that the customer’s advisory account had been negligently administered while Booth was associated with Cadaret Grant.
Thereafter, a customer filed an investment related complaint concerning Booth’s activities where the customer sought $27,000.00 in damages based upon accusations that a loan had been suspiciously taken from the customer’s American Financial Life Insurance Company life insurance policy where the customer was not provided any of the loan proceeds. Booth is also is subject of a customer initiated investment related complaint on June 6, 2019 in which the customer requested damages estimated to exceed $5,000.00 supported by allegations that the customer’s instructions concerning equity trades had been disregarded by Booth when he was associated with LPL Financial LLC, resulting in the customer sustaining unwarranted investment losses.
