James Marc Unger of Cleveland Ohio a stockbroker formerly employed by Financial America Securities has been barred from being a stockbroker or investment advisor representative or otherwise associating with securities broker dealers or investment advisories according to an SEC Order Instituting Administrative Proceedings based in part on Unger misappropriating funds belonging to one of his prior securities broker dealer customers. In the Matter of James M. Unger Administrative Proceeding File No. 3-18600 (July 17, 2018).
SEC took notice of Unger pleading guilty to, inter alia, wire fraud; conduct violative of 18 U.S.C. § 1343. United States v. James M. Unger Criminal Action No. 18-cr-48 (N.D. Oh. March 26, 2018). Allegedly, $267,664.31 had been embezzled by Unger from the accounts owned by a customer of his prior securities broker dealer employer. Allegedly, the customer lacked any knowledge of Unger’s activities and did not consent to funds being taken from her account. Supposedly, loans were also solicited by Unger from the customer; however, Unger did not have any plans for the repayment of those loans.
This is not the first time Unger has been sanctioned by a securities regulator. In fact, Unger has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that Unger entered into an unauthorized borrowing arrangement with a customer; lied to the firm in regard to his borrowing of a customer’s funds; and completed customers’ signed but otherwise blank forms to effect distributions. Letter of Acceptance Waiver and Consent No. 2013036302501 (Sept. 30, 2014). FINRA found Unger’s conduct violative of FINRA Rules 2010 and 3240.
FINRA Public Disclosure reveals that Unger has been identified in three customer initiated investment related disputes pertaining to allegations of his misconduct when he was associated with Fintegra, LLC and Sanders Morris Harris. In fact, a customer filed an investment related arbitration claim regarding Unger’s activities in which the customer sought unspecified damages based upon accusations that a private placement had been sold to the customer from Unger away from Fintegra which later caused the customer to incur more than $225,000.00 in losses.
Another customer initiated investment related arbitration claim involving Unger’s conduct was resolved for $140,000.00 in damages founded on allegations that the customer had been placed into illiquid and inappropriate private placement investments by Unger; false financial statements were prepared by Unger in regard to the customer’s investments; and the customer had been defrauded. FINRA Arbitration No. 14-02704 (Feb. 2, 2016).
