James Calder, of Borger, Texas, a stockbroker formerly registered with Raymond James, has been fined $15,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he engaged in outside business activities in violation of his firm’s policies. Letter of Acceptance, Waiver and Consent, No. 2016048601901 (Feb. 2, 2017).
According to the AWC, from April of 2010 to June of 2010, while Calder was associated with Raymond James, he took part in selling Life Partners’ life settlement contracts to customers, even though Calder was specifically instructed by Raymond James to refrain from the activities.
Specifically, in 2007, Calder reportedly asked Raymond James for permission to sell the life settlement contracts to customers, and was denied permission by the firm. The AWC revealed that in 2009, Life Partners licensed Calder’s spouse to sell the life settlement products. Subsequently, in 2010, four of Raymond James’ customers’ purchases of life settlement contracts had been facilitated by Calder. Apparently, recommendations were made by Calder to customers for purposes of investing in the life settlement contracts, where Calder then arranged for purchases to be made via his spouse.
The AWC additionally stated that Calder also took part in assisting investors with the life settlement contract purchases by fielding their questions regarding the products, and assisting them with the paperwork which customers were required to complete to effect the purchases. Customers evidently arranged for the purchases of the life settlement contracts solely by working with Calder, as opposed to his spouse. Ultimately, $8,925.00 in commissions were deposited by Life Partners into Calder’s account because of his sales efforts. FINRA found that Calder’s conduct was therefore violative of FINRA Rule 2010 and NASD Rule 3030.
FINRA Public Disclosure reveals that on April 19, 2016, a customer initiated investment related arbitration claim involving Calder’s conduct was settled for $75,000.00 in damages based upon allegations that Calder breached his fiduciary duties, negligently handled the customer’s investment account, defrauded the customer, and violated federal securities laws, the Texas Securities Act, and the Texas Consumer Protection Act.
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