Securities Lawyers Blog
Broker James Arnold Busch (“Busch”) was barred from the broker industry by The Financial Industry Regulatory Authority (FINRA) over allegations that Busch engaged in securities fraud by misappropriating customer funds from approximately 8 different clients’ bank accounts. FINRA alleged that most of Busch’s victims were elderly women.
In 1989, Busch first became registered with FINRA as a Series 6 (Investment Company Products/Variable Contracts Limited Representative). In 1992, Busch became licensed as a Series 7 (General Securities Representative). In 2000, Busch became registered with Wells Fargo Advisors, LLC (“Wells Fargo”) where Busch remained working out of various Georgia branch office locations until his termination in October 2013.
FINRA alleged that Busch worked in various branch offices of Wells Fargo that were also located in the firm’s affiliated bank. Many of Busch’s customers had both Wells Fargo brokerage accounts and Wells Fargo bank accounts. FINRA found that Busch had access to his customers’ bank account information through his relationship to the customers’ brokerage account. From 2006 to 2013, Busch used his customers’ bank account information to misappropriate approximately $1.3 million from approximately eight of his Wells Fargo brokerage customers. FINRA alleged that Busch took advantage of mostly elderly women.
FINRA found that Busch used two different methods to misappropriate money from his customers. FINRA alleged that between approximately 2009 and 2013, Busch would call his credit card company’s automated system and request payments from his customers’ Wells Fargo bank accounts to his personal credit card account. According to FINRA, Busch provided his credit card company with the customers’ Wells Fargo bank routing and bank account numbers to effectuate the transactions. However, prior to 2009, Busch used another manual process to accomplish the same means. FINRA alleged that Busch submitted a paper debit memo to his credit card company in order to authorize payments from his customers’ bank accounts to Busch’s credit card account. FINRA found that in some instances of misappropriation, Busch liquidated securities from the customers’ brokerage accounts in order to generate cash. The cash was then transferred from the customers’ brokerage accounts to the customers’ bank accounts where Busch would then misappropriate the funds.
The attorneys at Gana Weinstein LLP are experienced in investigating claims concerning securities fraud. Our attorneys can help you detect and uncover suspicious activity in your accounts. Our consultations are free of charge and the firm is only compensated if you recover.