According to Investment News, three clients of former broker, James Robert Glover, were awarded nearly $1.6 million through a FINRA arbitration claim. The Financial Industry Regulatory Authority (FINRA) claim alleged that Glover sold failed land deals in Texas real estate to multiple clients without the approval of the brokerage firm where he worked. The investment deals included: Colonial Funding, Colonial Tidewater Realty Income Partners and Texas Real Estate Partners.
During the relevant time, Glover appears to have worked for Signator Investors. According to their website, “Signator Investors, Inc. is a broker dealer serving 1,600 financial professionals in over 30 branch offices across the U.S., collectively known as the John Hancock Financial Network.”
According to the InvestmentNews, this was a case of “selling away” that involved fraud, negligence, breach of fiduciary duty and Signator’s alleged failure to supervise. Both Glover and Signator were found jointly liable for the compensatory damages and interest awarded to the claimants.
When a broker, such as Glover, sells investments that are not approved or held by the brokerage firm, the act can be considered “selling away.” Brokerage firms have a supervisory responsibility to clients to monitor the activity of their brokers. If a broker “sells away” from the firm, the brokerage firm can be found liable for negligent supervision of their broker and be held responsible for investment losses in a FINRA dispute resolution claim.
If you suffered losses investing with James Robert Glover and would like to discuss your potential to recover your losses through a FINRA arbitration claim, 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, and securities regulation/compliance law firm dedicated to the representation of investors in FINRA arbitration claims against brokerage firms throughout the United States. Our offices are located in Chicago, Illinois and Boca Raton, Florida.
To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.