James Marc Unger of Mayfield Heights Ohio is a stockbroker formerly registered with Financial America Services who has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Unger (1) entered into an unapproved borrowing arrangement with a customer (2) falsely attested to his borrowing arrangements within his firm’s compliance questionnaires (3) utilized signed but otherwise blank customer account forms to effect transactions and (4) willfully failed to make required regulatory disclosures. Letter of Acceptance Waiver and Consent No. 2013036302501 (Sept. 30 2014).
According to the AWC, in 2002, EC became a customer of Unger during the time that Unger was employed with Sanders Morris Harris, wherein EC continued to invest through Unger when Unger became employed with Fintegra, Hennion & Walsh Inc., as well as Financial America Securities, Inc. Apparently, from 2007 to 2014, $219,000.00 in funds had been provided to Unger from EC through a loan arrangement so that Unger could address his business and personal matters. Apparently, of the $219,000.00 borrowed, $150,000.00 came by way of EC’s checks and cash, $50,000.00 came from EC’s banking account, and $19,000.00 came from EC’s credit card.
Evidently, Unger never obtained authorization from his employing brokerage firms to borrow funds from customers, and those borrowing arrangements were never made known to his employers. FINRA found that Unger’s prohibited or unapproved loan arrangements with EC was violative of FINRA Rules 2010 and 3240, as well as National Association of Securities Dealers (NASD) Rules 2110 and 2380.
The AWC stated that during the time that Unger was associated with Sanders Morris Harris and Fintegra, he was obligated to attest to his borrowing arrangements. Yet, Unger reportedly stated in the compliance attestations administered to him between 2007 and 2012 that he did not solicit or otherwise accept cash or loans from the firms’ customers. FINRA found Unger’s failure to be forthcoming in that regard to constitute violations of FINRA Rule 2010 and NASD Rule 2110.
FINRA additionally stated that from October of 2010 to December of 2012, pre-signed but otherwise blank forms had been furnished to Unger by customers in order for Unger to effect distributions in their accounts; conduct violative of FINRA Rule 2010. Moreover, the AWC stated that Unger was subject of eleven total liens, where in some circumstances he failed to timely disclosure those liens to FINRA and in other circumstances he failed to disclose them altogether. FINRA found Unger’s willful failure to make required disclosures to be violative of FINRA Rules 2010 and 1122, as well as NASD Rule 2110, NASD IM-1000-1, and FINRA By-Laws Section 2(c).
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Unger has been identified in three customer initiated investment related disputes pertaining to accusations of Unger’s misconduct while employed with Sanders Morris Harris, Fintegra, Hennion & Walsh Inc., and Financial America Securities Inc.
In particular, on March 9, 2013, a customer filed an investment related written complaint involving Unger’s conduct, where the customer requested at least $5,000.00 in damages supported by allegations that a faulty withdrawal effected from the customer’s variable annuity caused the annuity’s death benefit and income benefit to be reduced in value.
Thereafter, a customer initiated investment related arbitration claim involving Unger’s conduct was settled for $140,000.00 in damages founded on accusations that Unger engaged in fraudulent activities affecting the customer’s investment portfolio, where he executed private placement transactions as well as fixed and variable annuity transactions that were unsuitable and illiquid. FINRA Arbitration No. 14-02704 (Oct. 14, 2014). The customer additionally alleged that fake financial statements had been distributed to the customer; the customer’s funds had been misappropriated; and the customer’s credit card had been unlawfully accessed by Unger for Unger’s personal use.
Unger has also been subject of a customer initiated investment related arbitration claim containing allegations against Unger of selling private placements away from his firm. FINRA Arbitration No. 15-00637 (Apr. 2, 2015).
Unger’s most recent employer, Financial America Securities, Inc., terminated him on June 10, 2014 based upon accusations that he failed to inform the firm that he was subject of a FINRA request for recorded testimony as part of FINRA’s investigation into his misconduct.
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