James Couture Barred by SEC and FINRA

James Couture (CRD #: 4406284), a broker formerly registered with LPL Financial, has been barred by both the SEC and FINRA, according to his BrokerCheck record, accessed on January 5, 2023. If you have questions about his alleged conduct as a broker, read on.

Bar by SEC

On November 28, 2022, the Securities and Exchange Commission barred James Couture.

On September 8, 2022, James Couture pleaded guilty to criminal charges including one count of investment adviser fraud. That lawsuit alleged, among other things, that James Couture misappropriated approximately $2.9 million from approximately six investors from September 2009 through January 2020.

He allegedly accomplished this by advising his clients to transfer their assets to Legacy Financial Group, a shell company he controlled that did not offer or hold investment products.

Not only did James Couture allegedly fail to inform clients of these facts, he allegedly also used clients’ funds for non-investment purposes, including buying the client list of another investment adviser in approximately 2013. To further this deception, James Couture allegedly produced fake account statements representing accounts and investments that did not exist.

Additionally, James Couture allegedly also used clients’ funds to cover withdrawals and transfers requested by other clients, and disguised these payments as disbursements made by profit-sharing or employee benefit plans held with a third-party benefit company.//

Investor Disputes

Four disputes, filed from 2020-2021, alleged that James Couture engaged in misappropriation of clients’ funds. These disputes were settled for approximately $3,175,179.42.

On October 20, 2020, an investor filed a dispute alleging James Couture made misrepresentations between April 21, 2020, and the date of filing. This dispute was denied by the firm.

However, investors should be aware that firms don’t need to permit an external review before denying a dispute. Investors may be able to recover their losses by pursuing FINRA arbitration after a denial.

FINRA Rule 2020

FINRA Rule 2020 forbids the use of manipulative or deceptive tactics, like the misrepresentation or omission of material facts, as they relate to the purchase and sale of securities.

Bar by FINRA

On October 21, 2020, James Couture consented to the entry of findings that he allegedly refused to provide information and documents requested by FINRA as part of an investigation into his termination from LPL Financial.

According to a Letter of Acceptance, Waiver & Consent (AWC), LPL Financial filed a Uniform Termination Notice for Securities Industry Registration (Form U5) allegedly describing the reason for James Couture’s termination as the alteration of information in a customer account statement, “maintained comingled customer funds,” and used an unapproved email address.

James Couture allegedly initially complied with FINRA’s requests but, on September 14, 2020, informed FINRA of his refusal to continue complying with requests for information and documents.

The AWC concluded that this alleged refusal violated FINRA Rule 8210 and 2010.

FINRA Rule 8210

FINRA Rule 8210 requires members to supply information, records, and testimony upon request by FINRA.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

James Couture was permanently barred by FINRA starting October 21, 2020.

You can read the full AWC here.

Termination from LPL Financial

On June 17, 2020, James Couture was fired from LPL Financial following allegations that he altered information on a customer account statement, specifically identifying information, account balances, and distributions; maintained “comingled” client funds; and used an email address not approved by the firm.

Background Information

James Couture has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 31 – Futures Managed Funds Examination
• Series 7 – General Securities Representative Examination

In the past, he worked for the following firms:

• LPL Financial (CRD#:6413)
• Lincoln Financial Securities (CRD#:3870)
• New England Securities (CRD#:615)
• Morgan Stanley DW (CRD#:7556)

Kurta Law Can Help

If you worked with James Couture and you have concerns about your investments, contact a New York investment fraud lawyer today for a free case evaluation. Call (877) 600-0098 or email info@kurtalawfirm.com.

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.