TCM Stockbroker Barred For Failure To Pay FINRA Arbitration Award
James Hal Heafner (also known as Jim Heafner) a stockbroker formerly registered with Taylor Capital Management Inc. (also known as TCM Securities Inc.) has been suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity on March 31, 2020 based upon accusations that Heafner failed to cooperate with a FINRA Arbitration Award in which he was found liable for breaching a fiduciary duty to the customer and for selling the customer unsuitable investments in 1st Global Capital Financial Services. FINRA Arbitration No. 19-03613.
This is not the first time that Heafner has been sanctioned by FINRA for engaging in misconduct. On July 30, 2019, he was barred in all capacities by the regulator based upon findings that he neglected to cooperate with FINRA during an investigation into allegations of his unauthorized transactions. Letter of Acceptance Waiver and Consent No. 2018059962701 (July 30, 2019). According to the AWC, Heafner was asked by FINRA to provide recorded testimony in response to allegations of him engaging in outside business activities during the time that he was associated with Taylor Capital Management. FINRA was made aware from Heafner’s attorney that Heafner refused to testify. The stockbroker’s conduct was violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure confirms that Heafner has been identified in three customer initiated investment related disputes concerning accusations of his misconduct while employed by Taylor Capital Management. Heafner was subject of a customer initiated investment related arbitration claim where the customer was awarded $149,618.42 in damages founded on Taylor Capital Management being found liable on the customer’s claims which included breach of fiduciary duty, fraud, negligence and the failure to supervise 1st Global Capital securities transactions recommended or effected by Heafner. FINRA Arbitration No. 18-03960.
On December 12, 2018, a customer filed an investment related arbitration claim pertaining to Heafner’s conduct in which the customer requested $268,015.79 in damages supported by allegations that the customer had been sold a 1st Global Capital debt security by Heafner through an outside business activity on September 29, 2017. FINRA Arbitration No. 18-03791. According to the claim, a Memorandum of Indebtedness had been sold by Heafner without Taylor Capital Management’s supervision.
Heafner is also the subject of a customer initiated investment related arbitration claim where the customer sought $100,000.00 in damages based upon accusations of an unsuitable investment in 1st Global Capital that were recommended by Heafner. FINRA Arbitration No. 19-00350 (Feb. 4, 2019). According to the claim, there was a breach of fiduciary duty and a breach of contract as it pertained to the transaction. There were allegedly non-disclosures of important information regarding the customer’s investments. The claim also alleges negligence and supervisory failures by Taylor Capital Management.
Heafner’s registration with Taylor Capital Management was terminated as of January 22, 2018. FINRA Public Disclosure also reveals that Heafner was discharged by Retirement Wealth Advisors on August 31, 2018 based upon allegations of him engaging in outside business activities without the firm’s permission and for neglecting to comply with written policies and procedures.