James Thomas Booth of Norwalk Connecticut a stockbroker formerly registered with LPL Financial LLC is named in a Securities and Exchange Commission (SEC) lawsuit in which SEC obtained a judgment which restrains and enjoins Booth from further violating federal securities laws based upon findings of Booth defrauding investors. Case No. 3:19-cv-01535 (Feb. 19, 2021).
SEC filed a complaint against Booth on September 30, 2019 alleging that a multi-year scheme was executed by Booth in which he lied to investors and stole their money. The regulator noted that misleading and false information was provided by Booth regarding investor accounts. The investors believed that Booth would use their money for securities purchases. But Booth paid his personal and business expenses instead.
SEC contended that customers of Booth were not sophisticated investors. They consisted of seniors who depended on him with their retirement accounts. Booth had those customers believe that their accounts were invested in securities and were generating returns. Those investors were provided with fake information about investments. When withdrawals were requested, Booth fraudulently moved other investors’ assets to accomplish the withdrawal requests. SEC alleged that Booth violated Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5 and Securities Exchange Act of 1933 Section 17(a).
Booth faced criminal proceedings for his actions as well, and pleaded guilty to one count of securities fraud. The United States Attorney’s Office for the Southern District of New York reported that Booth was sentenced to 42 months in prison and was ordered to forfeit nearly $5,000,000.00 in assets. Criminal Action No. 1:19cr699 (Oct. 22, 2019). SEC also barred Booth from being a securities broker or investment adviser representative or otherwise associating with securities firms or investment advisories given his fraudulent scheme. Case No. 3-19596 (Nov. 1, 2019).
Booth has additionally been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Booth stole customer funds. Letter of Acceptance Waiver and Consent No. 2019062787101 (July 1, 2019). According to the AWC, Booth violated FINRA Rules 2010 and 2150(a).
FINRA Public Disclosure shows that Booth has been identified in 36 customer initiated investment related disputes regarding accusations of his wrongdoing while employed by Invest Financial Corporation and LPL Financial. Booth is the subject of a customer initiated investment related FINRA securities arbitration claim where the customer requested compensatory damages based upon allegations of misappropriation.
On June 25, 2020, another customer initiated investment related FINRA securities arbitration claim regarding Booth’s conduct was settled for $120,000.00 in damages supported by accusations of Booth converting the customer’s funds in reference to a Ponzi scheme. FINRA Arbitration No. 19-03318. Booth is also referenced in a customer initiated investment related FINRA securities arbitration claim which was resolved for $80,000.00 in damages founded on allegations of a Ponzi scheme supported by the conversion of the customer’s funds by Booth when he was associated with Invest Financial Corporation and LPL Financial. FINRA Arbitration No. 19-02829 (Nov. 10, 2020).
Booth was registered with LPL Financial between February 14, 2018 and June 26, 2019.
