The Connecticut Department of Banking alleges that Certified Public Accountant (CPA) and former broker James E. Neilsen sold approximately $10 million in securities that were not registered in Connecticut nor were the securities apparently exempt from registration. Neilsen allegedly sold the majority of the securities between 2005 and 2010 to his CPA clients in the form of promissory notes and investments agreements for Ulysses Partners, LLC. According to the Connecticut Department of Banking’s announcer, Ulysses is a limited liability company that solicited and marketed prospective institutional investors for hedge funds. Neilson was purportedly a founding member of Ulysses and allegedly used the money to finance the company.
According to the Connecticut complaint, Neilson also allegedly represented the investment as excellent and made claims that it would generate high returns. Additionally, it is alleged that investors were not provided any offering document and the risks associated with the investment were not disclosed. Nielsen has partially repaid some investors, however he apparently still owes nearly $7 million.
According to Neilsen’s FINRA BrokerCheck report, he was a registered representative at the time he allegedly sold some of the unauthorized investments. Neilsen worked with Tradition Asiel Securities from 11/2004 to 07/2007, Sound Securities from 08/2002 – 12/2009, and Longship Alternative Asset Management from 01/2010 to 01/2011.
The White Law Group is investigating what liability these companies may have for Neilson’s actions. When a FINRA registered representative conducts business outside the scope of the brokerage firm where they are registered, the act can be considered “selling away.” If a registered broker “sells away” from their firm, the brokerage firm may be liable for negligent supervision of their broker representative and may be responsible for investment losses in a FINRA dispute resolution claim.
If you suffered losses investing with James E. Neilsen while he worked for a FINRA broker dealer, The White Law Group may be able to help. To discuss your litigation options with a securities attorney, please call (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 Boca Raton, Florida.
To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.