FINRA Suspends Broker James Bashaw for Allegedly Borrowing Money from Client
According to The Financial Industry Regulatory Authority today, the regulator has suspended and fined James Bashaw, a former LPL Financial broker, for allegedly borrowing close to $200,000 from a client in 2013.
Bashaw, who has worked in the securities industry for 33 years, was reportedly named a top adviser in Texas by Barron’s magazine in 2011 with $3.8 billion in total client assets.
According to his FINRA BrokerCheck report, he was reportedly affiliated with LPL from November 2001 until he was purportedly fired in October 2014 for allegedly borrowing money from a customer and participating in private securities transactions without obtaining written approval from the firm.
According to FINRA, in 2013 while he was registered with LPL, Bashaw allegedly received $200,000 in loans from a client who was also a longtime friend.
Consequently, according to the FINRA announcement, Bashaw reportedly consented to a 4 month suspension from associating with any FINRA member and a $5,000 fine. He will reportedly be required to requalify as a general securities representative by retaking and passing the Series 7 exam.
Bashaw is currently registered with International Assets Advisory in Houston, Texas. He has 8 disclosure events listed on this broker report including a personal bankruptcy filed in 2017.
According to a customer complaint on his broker report, on September 2016 a client alleged “Unsuitable investments, borrowing from customers, private securities transactions, and failure to supervise with respect to promissory notes provided by Mr. Bashaw and Mr. Bashaw recommending investments in Texas Air Shuttle, LLC.” The complaint was reportedly settled for $1,900,000. Damage amount requested was $3,800,000.
For FINRA’s full findings, see FINRA case # 2014042876501.
Investigating Potential Claims
The White Law Group is investigating potential claims involving Bashaw and the liability his former employers may have for failure to properly supervise him.
Under FINRA rules and regulations, Broker-Dealers are responsible for supervising the actions of those advisors registered with their firm, and therefore may be held liable for the actions of their Broker(s).
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
We represent investors in FINRA arbitration claims in all 50 states, including Texas. Our attorneys have recovered millions of dollars from many brokerage firms in the past, including LPL Financial.
If you are concerned about you investment losses with James Bashaw, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.