James Thomas Booth of Norwalk Connecticut a stockbroker employed by Invest Financial Corporation and LPL Financial LLC is the subject of an Order to Cease and Desist by the Banking Commissioner of the State of Connecticut based upon allegations that Booth engaged in fraudulent activities and had misappropriated funds belonging to customers of Invest Financial Corporation and LPL Financial customers between 2013 and 2019. Case No. CDFR-20-8535-S (Feb. 14, 2020).
According to the Order, between 2013 and 2019, customers of Invest Financial and LPL Financial had been solicited by Booth to relocate their assets to Insurance Trends Inc. – a company controlled by Booth. Customers’ assets were used by Booth for himself rather than for investing on behalf of those customers. The Banking Commissioner alleged that customers were provided with false account statements reflecting that their money was invested. Approximately $5,000,000.00 in investor funds was misappropriated by Booth.
FINRA Public Disclosure reveals that Booth has been barred from associating with any FINRA member in any capacity based upon findings of multiple customers’ funds being converted by the stockbroker during the time that he was associated with LPL Financial. Letter of Acceptance Waiver and Consent No. 2019062787101 (July 1, 2019). FINRA determined that Booth’s conduct constituted violations of FINRA Rules 2010 and 2150(a).
On November 1, 2019, Booth was barred by Securities and Exchange Commission (SEC) from being a stockbroker or investment adviser representative or otherwise associating with any securities broker dealer or investment adviser according to an Order based upon findings of Booth committing fraud. In the Matter of James T. Booth Administrative Proceeding File No. 3-19596 (Nov. 1, 2019). SEC noted that Booth had pled guilty to committing securities fraud. Criminal Action No. 1:19cr699 (S.D.N.Y. Oct. 22, 2019).
Booth has been identified in thirty-five customer initiated investment related disputes containing allegations of his misconduct while employed by securities broker dealers including Invest Financial Corporation and LPL Financial. FINRA Public Disclosure reveals that Booth is referenced in a customer initiated investment related arbitration claim in which the customer requested unspecified damages supported by allegations that the customer’s funds were misappropriated or converted by the stockbroker. FINRA Arbitration No. 19-03317 (Nov. 6, 2019). According to the claim, the customer was defrauded as a result of a Ponzi scheme executed through Booth’s use of shell companies while employed by Invest Financial Corporation and LPL Financial.
Booth has also been identified in a customer initiated investment related arbitration claim where the customer sought unspecified damages founded on accusations of Booth’s fraud. FINRA Arbitration No. 19-03600 (Dec. 6, 2019). According to the claim, the customer’s funds were converted to support a Ponzi scheme unbeknownst to the customers until June of 2019. On January 22, 2020, a customer initiated investment related arbitration claim involving Booth’s conduct was settled for $1,206,652.82 in damages based upon allegations of the customer’s funds being misappropriated by being placed in a shell company under Booth’s control. FINRA Arbitration No. 19-01828.
On May 30, 2019, LPL Financial discharged Booth supported by allegations of a customer’s funds being misappropriated by the stockbroker.