Investor Seeks Six Figures in Dispute with James Armour

James Armour (CRD #: 705645), a broker registered with Ausdal Financial Partners, is involved in a pending investor dispute, according to his BrokerCheck record, accessed on January 24, 2023. If you want to know more about his alleged conduct as a broker, keep reading.

Investor Disputes

On November 28, 2022, an investor named James Armour in a dispute alleging a violation of the suitability rule, a lack of due diligence, and failure to supervise. The client seeks $150,000 in damages in this pending dispute.

In a dispute filed on January 27, 2019, multiple investors alleged that James Armour misrepresented unsuitable investments in Bakken Drilling Fund III and Bakken Drilling Fund IV. 

The clients further alleged that Ausdal Financial Partners failed to supervise and conduct sufficient due diligence with regard to these investments. The investors sought $295,000 and received a settlement of $1.25 million.

FINRA Rule 2111 and Regulation Best Interest

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. These profiles describe an investor’s risk tolerance, tax status, and financial goals.

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2020

FINRA Rule 2020 bans the use of fraudulent tactics, like deception or manipulation, as they relate to the purchase and sale of securities.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish systems of supervision to maintain their compliance with securities regulations. Firms must appoint supervisors and provide them with Written Supervisory Procedures (WSPs) to follow.

Background Information

James Armour has passed the following exams:

• Series 65 – Uniform Investment Adviser Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination
• Series 1 – Registered Representative Examination
• Series 24 – General Securities Principal Examination

James Armour is a registered broker in nine states and a registered investment adviser in Minnesota.

He has also worked for the following firms:

• Workman Securities Advisory Services (CRD#:31898)
• Dain Rauscher (CRD#:31194)
• Dain Rauscher (CRD#:7600)     
• PaineWebber (CRD#:8174)
• Smith Barney, Harris Upham & Company (CRD#:7059)
• LTPC (CRD#:15383)
• Midland Management Corporation (CRD#:6677)

Kurta Law Can Help

If you worked with James Armour and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.