Jim Eugene Scala Jr., of Beverly Hills, California, a stockbroker registered with PHX Financial Inc., was the subject of a customer initiated investment related Financial Industry Regulatory Authority (FINRA) securities arbitration claim that was settled for $14,900.00 in damages based upon allegations that Scala breached his fiduciary duties in connection with the sale of certain equities or stocks when Scala was associated with PHX Financial Inc. FINRA Arbitration No. 22-02572 (January 26, 2024).
FINRA Public Disclosure shows that Scala is referenced in three other customer disputes concerning Scala’s conduct while associated with securities broker dealers. On March 18, 1999, a customer initiated investment related complaint involving Scala’s conduct was settled for $9,500.00 in damages based upon allegations that Scala made the unsuitable investment recommendation of over-the-counter equities, charged excessive commissions, and engaged in unauthorized trading and churning in the customer’s account when Scala was associated with Morgan Taylor and Associates.
On March 24, 2006, a customer initiated investment related FINRA securities arbitration claim involving Scala’s conduct was settled for $24,000.00 in damages based upon allegations that Scala failed to execute a stop loss order during the period that Scala was associated with Milestone Financial Services Inc. FINRA Arbitration No. 06-01396.
Scala was also referenced in a complaint filed on January 26, 2006, in which the customer requested $10,000.00 in damages based upon allegations that Scala made the unsuitable investment recommendation of stocks during the time that Scala was associated with GunnAllen Financial. This complaint was withdrawn by the customer.
Scala was also fined $5,000.00 and suspended from associating with any FINRA member in any capacity for selling away. Letter of Acceptance, Waiver, and Consent No. 2011025846001 (January 18, 2013). According to the AWC, Scala owned shares in Deluge Inc., an alternative energy company. He sold these shares to customers of Scala’s employer at the time, Dalton Strategic Investment Services Inc., without providing prior written notice or obtaining prior written approval. Therefore, Scala violated NASD Rule 3040 and FINRA Rule 2010.
Scala has been associated with PHX Financial Inc. in Beverly Hills, California since October 29, 2014.
