FINRA Bars Ameritas Stockbroker In Selling Away Investigation
James F. Anderson of Dakota Dunes South Dakota a stockbroker formerly employed by Ameritas Investment Corp. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon Anderson’s consent to findings that he failed to cooperate with an investigation launched by FINRA in regard to allegations of Anderson selling away from the firm. Letter of Acceptance Waiver and Consent No. 2019061592601 (June 3, 2019).
According to the AWC, an investigation had been launched by FINRA into Anderson after Anderson had been discharged by Ameritas Investment Corp on February 11, 2019. FINRA Public Disclosure confirms that Anderson was terminated because of the firm’s findings of Anderson selling promissory notes and indexed annuities outside the firm’s auspices.
Evidently, on February 25, 2019 – two weeks following Anderson’s termination from Ameritas – Anderson was sent a request from FINRA personnel who called upon him to provide information to the regulator under Rule 8210. Evidently, FINRA was contacted by Anderson on March 25, 2019 and again April 24, 2019 in which Anderson confirmed that although he understood the nature of FINRA’s request, the information sought would not be provided by him. Ultimately, Anderson failed to hand over information and documentation, blocking FINRA from ascertaining whether Anderson sold investments away from Ameritas Investment Corp. without having notified the firm or procured its approval. FINRA found Anderson’s lack of cooperation in this respect to be violative of FINRA Rules 2010 and 8210.
This is not the first time that Anderson has been subject of a FINRA disciplinary action in reference to his misconduct in the securities industry. Particularly, Anderson was sanctioned by FINRA founded on accusations that he engaged in the sales of indexed annuities which had not been offered by Ameritas Investment Corp., and he failed to timely notify the firm in reference to his outside business activities. Case No. 20110291048 (Jan. 7, 2013).
FINRA Public Disclosure also confirms that on April 4, 2019, a customer filed an investment related arbitration claim involving Anderson’s activities in which the customer requested $400,000.00 in damages based upon allegations that while Anderson was associated with Ameritas Investment Corp., Anderson gave the customer bad advice concerning the purchase of a promissory note handled away from the firm and without the firm’s knowledge or approval.