James Bernis Lunsford (also known as Jim Lunsford) a stockbroker formerly employed by Mid Atlantic Capital Corporation is the subject of a customer initiated investment related arbitration claim in which the customer requested $200,000.00 in damages supported by accusations that the customer’s account was negligently supervised at Mid Atlantic Capital Corporation and that misrepresentations and omissions had been made to the customer as it pertained to direct investments including direct participation program interests and limited partnership interests. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-00243 (Feb. 5, 2020).
According to the claim, a fiduciary duty that was owed to the customer had been breached. The customer had allegedly been defrauded by purchasing alternative investments through Lunsford. The claim also alleges that Lunsford’s negligence resulted in the customer’s losses.
FINRA Public Disclosure reveals that Lunsford has been identified in six additional customer initiated investment related disputes involving allegations of his bad actions while employed by Mid Atlantic Capital Corporation.
On May 9, 2017, another customer initiated investment related arbitration claim regarding Lunsford’s conduct was settled for $97,125.00 in damages based upon accusations that a contract between the customer and the securities broker dealer had been breached and that a fiduciary duty had been breached by Lunsford when he was associated with Mid Atlantic. FINRA Arbitration No. 16-03515 (May 9, 2017). According to the claim, FINRA rules and California securities laws had been violated in relation to direct investment sales executed by Lunsford. Those investments were allegedly not suitable for the customer. The claim indicated that the customer sustained losses from the stockbroker’s negligence and conversion of funds. Transactions were allegedly misrepresented and fraudulent.
On June 28, 2018, a customer initiated investment related arbitration claim concerning Lunsford’s activities was resolved for $285,000.00 in damages founded on allegations that unsuitable limited partnership interests had been sold to the Mid Atlantic customer and that the customer’s transactions failed to be reasonably supervised by the securities broker dealer. FINRA Arbitration No. 15-01319.
Lunsford is also the subject of a customer initiated investment related arbitration claim where the customer was awarded $177,550.00 in compensatory damages supported by Mid Atlantic being found liable on the customer’s causes of action including misrepresentation and fraud in regard to direct participation program interests or limited partnership interests including JADDA Secured Senior Mortgage Fund LLC. FINRA Arbitration No. 17-00606 (Dec. 10, 2018). According to the claim, a fiduciary duty was breached by the stockbroker. Private placements were unsuitable for the customer given the speculative nature of those products.
On January 22, 2019, another customer initiated investment related arbitration claim involving Lunsford’s conduct was settled for $200,000.00 in damages based upon accusations of the breach of a fiduciary duty and negligence as it pertained to Lunsford’s direct participation program sales. FINRA Arbitration No. 18-00513. The customer’s account was allegedly unsupervised and exposed to fraud.
Lunsford is also referenced in a customer initiated investment related arbitration claim which was resolved for $160,000.00 in damages founded on allegations of negligence and the concealment of facts by the stockbroker as well as his breach of a fiduciary duty. FINRA Arbitration No. 18-02081 (Aug. 23, 2019). The claim alleges that the customer was placed into misrepresented alternative investments and that a contract between the Mid Atlantic customer and the securities broker dealer had been breached resulting in losses.
