Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that Broker James Etter (Etter) has been accused by investors of engaging in fraudulent misappropriation of their funds. According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Etter was employed by Natalliance Securities, LLC at the time of the activity. If you have been a victim of Etter’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a final customer complaint on November 12, 2024.
Without admitting or denying the findings, Etter consented to the sanctions and to the entry of findings that he participated in private securities transactions that raised $110,000 from investors without prior disclosure to his member firm. The findings stated that Etter solicited investments in an entity he founded and controlled, answered questions about the investments, and collected investment paperwork and investment funds. The investors were not customers of Etter’s firm and later received their funds back. The findings also stated that Etter participated in an undisclosed OBA without disclosing the activity in writing and obtaining his firms approval. Etter provided business development and due diligence services to a solar equipment company and received approximately $66,000 in compensation for that work.
Our firm is highly experienced in pursuing cases for defrauded clients whose advisors accept client loans or sell securities through OBAs. In the financial industry, “selling away” refers to the sale of unapproved investment products, fake schemes that conceal stolen funds, and other fraudulent activities, representing a significant violation of securities regulations. In finance, “selling away” occurs when a financial advisor recommends investments in companies, promissory notes, or other securities without the approval of their broker’s affiliated firm. In some cases, these investments are legitimate, but more often than not, they result in Ponzi schemes or financial advisors converting funds for personal use.
However, federal securities laws and the FINRA rules require firms to monitor and supervise its employees in order to detect and prevent brokers from offering investments in this fashion. To ensure proper supervision of brokers, firms must establish procedures for monitoring advisors’ actions and engagements with the public. Selling away misconduct often occurs where brokerage firms either fail to put in place a reasonable supervisory system or fail to actually implement that system. Supervisory failures allow brokers to engage in unsupervised misconduct that can include all manner improper conduct including selling away.
In cases of selling away the investor is unaware that the advisor’s investments are improper. In many of these cases the investor will not learn that the broker’s activities were wrongful until after the investment scheme is publicized, the broker is fired or charged by law enforcement, or stops returning client calls altogether.
Etter has been in the securities industry for more than 14 years. Etter has been registered as a Broker with Natalliance Securities, LLC since 2012.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.
