James Marten Lamont of San Francisco California a stockbroker currently employed by Whitehall-Parker Securities Inc. has been fined $10,000.00 and suspended for eighteen months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Lamont sold promissory notes investments in Woodbridge Group of Companies LLC outside the auspices of Whitehall-Parker. Letter of Acceptance, Waiver and Consent No. 2017052705801 (Oct. 2, 2019).
According to the AWC, from September of 2015 to July of 2017, investors had been solicited by Lamont to buy promissory notes associated with Woodbridge Group of Companies LLC. The AWC stated that Woodbridge was a purported real estate investment fund. FINRA revealed that $1,467,000.00 in promissory notes purchases were collectively made by three Whitehall-Parker customers and four non-firm customers. Those transactions were facilitated by Lamont away from the firm, and the stockbroker received commissions totaling $81,417.00.
Lamont failed to comply with Whitehall-Parker Securities’ policies which called for him to make a written request to engage in the private securities transactions and for him to procure authorization from the securities broker dealer before taking part in those private securities transactions. The AWC reported that Whitehall-Parker Securities was never notified by Lamont about the promissory notes transactions, and the securities broker dealer did not authorize his activities.
In 2015 and 2017, Lamont was administered a questionnaire in which he failed to relay to Whitehall-Parker Securities that he sold away despite the securities broker dealer’s warning that stockbrokers’ sales of purported “non-securities” investments could expose the firm to substantial risk. Indeed, FINRA noted that Woodbridge Group of Companies LLC submitted a Chapter 11 bankruptcy petition in December of 2017. FINRA found Lamont’s conduct violative of FINRA Rules 2010 and 3280 as well as National Association of Securities Dealers (NASD) Rule 3040.
FINRA Public Disclosure reveals that Lamont is referenced in ten customer initiated investment related disputes which pertain to allegations of his misconduct while he was employed with securities broker dealers including Parkland Securities (formerly known as Sammons Securities), Sigma Financial Corporation, and Independent Financial Group.
In particular, a customer initiated investment related arbitration claim in regard to Lamont’s activities was settled for $60,500.00 in damages founded on accusations that when Lamont was employed by Independent Financial Group, contractual and fiduciary duties were violated; the customer was sold direct participation program or limited partnership interests that failed to be suitable; transactions violated both federal and state securities laws; and the customer was defrauded. Lamont is referenced in another customer initiated investment related arbitration claim which was resolved for $99,000.00 in damages based upon allegations that fiduciary duties were violated; false or misleading statements and omissions were made concerning tenant in common investments; and Lamont failed to conduct due diligence on investments that he sold or recommended to the customer when Lamont was associated with Sigma Financial Corporation.
Also, Lamont is the subject of a customer initiated investment related arbitration claim which was settled for $160,000.00 in damages supported by accusations of false or misleading statements being made to the customer; contractual obligations having been violated; and negligent purchases of real estate security and oil and gas products. Another customer initiated investment related arbitration claim involving Lamont’s behavior was resolved for $87,500.00 in damages founded on allegations of negligence; breach of contract; and misrepresentation relating to the customer’s purchase of a tenant in common investment during the time that Lamont was employed by Parkland Securities. FINRA Arbitration No. 14-03653 (Nov. 9, 2015).
