John M. James of Golden Valley, Minnesota, a stockbroker associated with Merrill Lynch, Pierce, Fenner & Smith, Incorporated, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to cooperate with FINRA in an investigation into allegations of his borrowing of customer funds, private investments, and outside business activity. Letter of Acceptance, Waiver and Consent, No. 2016049378901 (Dec. 27, 2017).
According to the AWC, on March 24, 2016, Merrill Lynch notified FINRA that James was terminated during the time that he was subject of an international investigation into his possible customer loan arrangements, outside investments and undisclosed business activities. The AWC stated that James was then sent a request from FINRA on October 10, 2017, asking that he provide recorded testimony on November 6, 2017, in regard to Merrill Lynch’s allegations. Apparently, James was a no show.
The AWC stated that on November 8, 2017, another request was sent by FINRA for James to testify. James’ counsel subsequently communicated with FINRA staff on November 8, 2017, informing FINRA that James understood what was sought of him but would not be making an appearance to testify at any point. James’ refusal to appear was conduct FINRA found to be violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure reveals that prior to James’ bar, he was fired by Stifel Nicolaus on September 6, 2016, based upon allegations that he furnished inaccurate details in regard to Merrill Lynch’s investigation into his conduct.
James has also been subject of a customer initiated investment related arbitration claim, which settled for $160,000.00 in damages founded on accusations that James made unsuitable investment recommendations to the customer relating to mutual fund and equity transactions. FINRA Arbitration No. 09-04165 (Oct. 21, 2010).
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