Were you a client of James F. Anderson? The South Dakota broker has been permanently barred from the securities industry for failing to cooperate with financial industry regulatory authorities.
FINRA’s BrokerCheck shows Anderson (CRD# 4803514) is no longer registered as a broker and had been with Ameritas Investment Corp. since 2004, where he served as a financial advisor out of several branch locations in South Dakota, Iowa, and Nebraska. Anderson was terminated from Ameritas on February 11, 2019 for engaging in the sales of indexed annuities and promissory notes away from the firm. After that, FINRA began an investigation into the allegations. Because Anderson did not cooperate with the investigation, FINRA barred him.
A pending customer dispute from April 2019 claims Anderson engaged in unsuitable recommendations to purchase promissory notes that were unapproved by Ameritas and seeks $400,000 in damages.
Selling away is generally a violation of securities industry regulations, and is a practice which involves solicitation of products unapproved by the broker’s member firm. It may involve promissory notes, private placements, and other investments – including indexed annuities which offer brokers high commissions.
Selling away can unfortunately result in substantial financial losses for investors. However, it is possible that such practices took place because a broker’s firm failed to supervise its employee properly, therefore exposing the broker-dealer to potential liability for customer damages.
Discuss a potential investment loss case with an attorney from Meyer Wilson. Contact us for a free and confidential case review.