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James Baroutas Allegedly Executed Unauthorized Transactions

James Baroutas (CRD #: 1252613), a broker registered with B. Riley Wealth Management, allegedly executed unauthorized transactions, according to his BrokerCheck record, accessed on February 9, 2023. If you want to know more about his alleged conduct as a broker, keep reading.

Investor Dispute

On July 27, 2022, an investor filed a dispute alleging that James Baroutas exchanged a portfolio of blue-chip stocks for investments offered by the following companies, without the client’s permission:

  • IN8Bio
  • Eloxx Pharmaceutical
  • Journey Medical
  • Runway Growth
  • Landsea Homes
  • Cadiz
  • Doubledown Interactive
  • LifeMD
  • Minim

The client sought $300,000 and the dispute settled for $150,000. 

FINRA Rule 3260

Unauthorized trading violates FINRA Rule 3260, which limits brokers to engaging in discretionary trading in pre-authorized accounts. These accounts must be approved for discretionary trading by both the client and the firm.

Background Information

James Baroutas 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 3 – National Commodity Futures Examination
  • Series 7 – General Securities Representative Examination

James Baroutas is a registered broker in 22 states and the District of Columbia. He is also a registered investment adviser in New Jersey and New York.

He has also worked for the following firms:

  • Dominick & Dominick (CRD#:7344)
  • Morgan Stanley Smith Barney (CRD#:149777)
  • Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
  • Warburg Dillon Read (CRD#:7654)
  • SBC Warburg Dillon Read (CRD#:1650)
  • Oppenheimer & Company (CRD#:630)
  • Prudential Securities (CRD#:7471)
  • Shearson Lehman Brothers (CRD#:7506)

Kurta Law Can Help

If you worked with James Baroutas and you have concerns about your investments, please contact us today at 877-600-0098 or 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.