James Joseph Bracey IV, of Martinsville, New Jersey, a stockbroker formerly registered with Multi-Financial Securities Corporation, is the subject of a customer initiated investment related arbitration claim on July 16, 2015, in which the customer requested $803,000.00 in damages based upon allegations against Bracey of negligence, violation of California Securities Law, fraudulent concealment, misrepresentation, and breach of fiduciary duty in connection with the customer’s private placement and direct investment products.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Bracey has been identified in four more customer initiated investment related disputes pertaining to allegations of his wrongdoing while associated with Multi-Financial Securities Corporation. Specifically, on September 29, 2010, a customer filed an investment related written complaint involving Bracey’s conduct, in which the customer requested $600,000.00 in damages based upon allegations that Bracey made misrepresentations to the customer in regard to real estate investment trust products effected in the customer’s account.
Subsequently, on October 11, 2012, a customer initiated investment related arbitration claim regarding Bracey’s activities was resolved for $105,000.00 in damages grounded upon allegations that Bracey effected unsuitable transactions in the customer’s account and made misrepresentations to the customer concerning equipment leasing and direct investment products. Further, on December 23, 2014, a customer initiated investment related arbitration claim regarding Bracey’s activities was resolved for $78,400.00 in damages based upon allegations that he made misrepresentations and unsuitable investment recommendations to the customer, and breached his fiduciary duties regarding the customer’s direct investment product transactions.
Bracey was terminated from three prior employers based upon accusations of his sales practice violations. In particular, he was fired from Morgan Stanley on September 3, 2003, based upon allegations that he botched a transaction that led to a customer’s loss of $2,600.00. He was later fired from LPL Financial LLC on April 1, 2013, based upon allegations of his failure to apprise the firm about outside business activities that he engaged in. He was also terminated from Private Advisor Group, LLC, on April 30, 2013, based upon allegations of his outside business activities.
Bracey has also been fined and suspended from associating with any FINRA member in any capacity based upon consenting to findings that he, inter alia, entered into an unauthorized loan arrangement with a customer of the firm, effected unauthorized transfer of monies from the customer’s account, sold away from his firm, and engaged in outside business activities. Letter of Acceptance, Waiver and Consent, No. 2011026425501 (May 5, 2014).
According to the AWC, a loan was consummated between Bracey and a customer of Multi-Financial, where the transaction was effected without approval of the firm. Apparently, a customer’s wire instructions were then falsified by Bracey to facilitate a fund transfer despite the transfer having been unauthorized. Moreover, Bracey evidently sought investments to be made by seventeen individuals, wherein the transactions were slated to occur outside of Multi-Financial’s auspices. Bracey’s overall conduct was found by FINRA to be violative of FINRA Rules 3240, 3270, 2010, as well as NASD Rule 2110, 2370, 3030, and 2110.
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