James W. Flower, SW Financial, Melville, NY
Advisor James Flower Reportedly Under Investigation for Churning Allegations
According to the Financial Industry Regulatory Authority (FINRA), FINRA’s Department of Enforcement has alleged that between January 1, 2016 and July 31, 2018 Respondent James W. Flower (CRD#: 2817701), while associated with SW Financial, purportedly churned and excessively traded five customers’ accounts.
FINRA further alleges that Flower’s trading in these customers’ accounts purportedly resulted in annualized cost-to-equity ratios ranging from 69% to 176%, annualized turnover rates from 16 to 33, and realized losses totaling over $220,000 while generating more than $210,000 in commissions and fees. FINRA also alleged that Flower’s purported churning and excessive trading made it virtually impossible for any of these customers to make a profit. According to FINRA, Flower also purportedly placed 18 unauthorized trades in one customer’s account (that also was allegedly churned and excessively traded) in violation of FINRA Rule 2010.
Finally, FINRA says that Flower allegedly caused inaccuracies in his Firm’s books and records during the Relevant Period by purportedly mismarking solicited sales transactions in those accounts as “unsolicited.”
According to FINRA, in June 2017, Flower reportedly entered into a Letter of Acceptance, Waiver and Consent for violating FINRA Rules 2111 and 2010. Flower reportedly “recommended that thirteen of his customers invest in a security known as the iPath S&P 500 VIX Short Term Futures ETN, a highly volatile exchange-traded note, without having a reasonable basis for recommending the transactions.”
At that time, Flower reportedly consented to a three-month suspension from association with any FINRA member firm in any capacity and agreed to attend and satisfactorily complete 10 hours of continuing education concerning complex products.
According to Flower’s Broker Report, he was reportedly registered with SW Financial in Melville, NY from 12/01/2015 – 06/03/2019. His report indicates he reportedly has four customer complaints filed against him for allegations of churning and unsuitability, among others.
Free Consultation with a Securities Attorney
The White Law Group is investigating the liability that Flower’s employers may have for failure to properly supervise him.
Brokerage firms are required to properly supervise their advisors. They must ensure that those advisors are complying with applicable FINRA rules and regulations. If it can be demonstrated that Flower’s former employers failed to properly supervise him, the firm may be held responsible for the losses in a FINRA arbitration claim.
If you are concerned about your investments with Jim Flower and would like a free consultation to discuss your litigation options, please call The White Law Group at 1-888-637-5510.
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.
For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.