BROWSE BY TOPIC
Stories of Interest
- I Owned Bitcoin For a Weekend and Here's What I Learned
- SEC Appoints New Chair and Board Members to PCAOB
- FINRA, Georgetown Team Up to Deliver 'Certified Regulatory and Compliance Professional' Program
- FINRA Board Meeting - This Week's Agenda
- Statement on Cryptocurrencies and Initial Coin Offerings - SEC Chair Clayton
- Company Halts Initial Coin Offering Over SEC Registration Concerns
- Kevin O'Leary Explains One Big Thing People Don't Understand About Bitcoin (But Need To)
- CME Bitcoin Futures: A Better Way to Buy (or Short) Bitcoin?
- Address at ICI's 2017 Securities Law Developments Conference - SEC Commissioner Stein
- New York Pension Fund Seeks More Pay Disclosure from Wells Fargo
- Wells Fargo Sanctions Are on Ice Under Trump Official
- Josh Brown: Here's How to Buy Bitcoin, But Realize It Could Be One Giant Bubble
- Trump's New Tax Plan Could Cost Citigroup $20 Billion
- Morgan Stanley Fires Former Congressman Harold Ford Jr.
- Al Franken Will Resign Over Sexual Misconduct Allegations - His Full Resignation Speech
- Ex-NFL Player Gets 40 Years for Running $10Mn Fraud
- Bitcoin Blows Past $15K, Adding $2K in Under 12 Hours
- Financial Adviser Settles Charges for Defrauding Private Equity Fund Investors
- New Cross Market Equity Supervision Report Cards - FINRA Phone-In Workshop, WebEx Presentation
- Mueller Just Crossed Trump's Red Line, With Deutsche Bank Subpoena
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
WWW: Broker Goes 'Double or Nothing' on Life Settlement Sales
[Photo: DullHunk (Duncan Hull) / Flickr]
James Calder II, of Borger, TX, agreed to a $15K fine and 6-month suspension to settle FINRA charges that he engaged in an undisclosed outside business activity by participating in the sale of life settlement contracts to customers of his member firm after it had expressly denied his request to participate in such activity.
BACKGROUND. Calder entered the securities industry in September 1999. He worked for Raymond James Financial Services from 2002 until February 2016, when he was permitted to resign during Raymond James' internal investigation of his involvement in "selling life settlement to clients." Calder has not since associated with another FINRA member firm. During his career, Calder obtained Series 7,9,10 and 63 securities licenses.
FACTS AND CIRCUMSTANCES. According to FINRA, from April 2010 to June 2010, recommended life settlement investments to the customers, and when they expressed interest in investing, he referred them to his wife to make their investments. Calder’s wife, a school teacher who had no prior experience in the securities or insurance, became licensed in 2009 by Life Partners to sell its life settlement products.
The referral to his wife might have been fine, except that Calder facilitated the customers’ investments and "sealed the deal” by answering their questions about life settlement investments and providing them with the necessary paperwork to make the investments. He also dealt exclusively with the customers, while his wife effectively sat on the sidelines throughout. On payday, nearly $9,000 in commissions on those sales were received into a joint bank account.
FINANICIALISH COMMENTS. One other possible way for Calder to 'get away' with such unauthorized sales was to deal with non-Raymond James customers. This, of course, would still have been in violation of his employment, but if he's going to try and make a go at it, he might have diversified his client base.
This case was reported in FINRA Disciplinary Actions for April 2017.
For details on this case, go to … FINRA Disciplinary Actions Online, and refer to Case #2016048601901.