If you suffered losses investing with James Glover in Colonial Tidewater Realty Income Partners, The White Law Group may be able to help. The firm continues to investigate the liability that Glover’s FINRA employer may have for failure to supervise Glover’s activities.
On January 18, 2013, Glover was permanently barred by FINRA from registration with any associated broker-dealer firms for failing to appear to give testimony related to the sale of Colonial without the permission of his broker-dealer. For more information on FINRA’s findings, visit http://seekingalpha.com/instablog/1047207-d-daxton-white/3001373-securities-fraud-investigation-involving-james-robert-glover-and-colonial-funding.
Separately, in an Administrative Proceeding before the Securities Commission of Maryland, an interim order was entered that made the following assertions:
“Glover, Inc. is a Maryland corporation with offices located at 7201Rossville Boulevard, Baltimore, Maryland 21237. Glover, Inc. was registered as an investment adviser in Maryland from February 11, 2004 until December 31, 2012 when its registration terminated because it was not renewed. Glover is the president and only employee of Glover, Inc.”
“Glover resides in Baltimore County, Maryland. As the sole owner and employee of Glover, Inc., Glover was not required to register as an investment adviser representative of Glover,Inc. From May 1998 until May 2012, Glover was registered in Maryland as a broker-dealer agent for Signator Investors, Inc.”
“Tidewater is a Maryland corporation located in Baltimore County, Maryland. Tidewater is wholly owned and controlled by Glover. Tidewater has never been registered as abroker-dealer or investment adviser in Maryland.”
“Between January 2001 and January 2012, Glover recommended, offered and sold to approximately one hundred investors shares in Colonial Tidewater Realty Income Partners, LLC (“Colonial”), a real estate investment limited liability company.”
“ The Colonial offering material described Glover as a “financial advisor” who “assists clients in a variety of financial planning areas, including insurance, investments, retirement planning, college funding and benefits analysis and estate planning” and as a “Registered Financial Consultant.”
“According to Colonial’s offering material, Glover was a managing member for Colonial, and Colonial was supposed to pay him annually $125,000 plus 1% of assets under management.”
“The Division is investigating whether and how these fees were paid to Glover.”
“The Division is investigating whether, based on its compensation and activities, Tidewater conducted business as an investment adviser when it was not registered in Maryland as an investment adviser.”
“The Division is investigating whether, Glover misappropriated approximately $5,340 from an investor, which money was repaid to the investor by Glover’s broker-dealer, which was reimbursed by Glover.”
“The Division is investigating how Glover represented himself to clients and the disclosure that Glover and Glover, Inc. made to clients.”
When a broker conducts business outside of the brokerage firm he is registered with (as has been alleged in the case of Glover), the act can be considered “selling away.” If a registered broker “sells away” from their firm, the brokerage firm may still be liable for negligent supervision and responsible for investment losses in a FINRA dispute resolution claim.
Glover’s FINRA BrokerCheck report confirms that he was registered with Signator Investors from May 1998 through May 2012.
If you were a client of James Glover and would like to discuss your litigation options, please call the securities attorney of The White Law Group at (312) 238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.