James Etter Suspended by FINRA Over Alleged Unapproved Private Securities Transactions

James Etter (CRD #: 5576744), a broker formerly registered with NatAlliance Securities, allegedly engaged in unapproved private securities transactions, according to his BrokerCheck record, accessed on December 15, 2024. If you want to know more about his alleged conduct as a broker, keep reading.

FINRA Suspension

On November 12, 2024, James Etter consented to the entry of findings that he allegedly participated in private securities transactions from August 2021 to May 2022 without prior disclosure to his firm.

According to a Letter of Acceptance, Waiver & Consent (AWC), James Etter allegedly solicited, answered questions about, and collected paperwork and funds for investments in an entity he founded. This allegedly resulted in two companies investing $110,000 via three promissory notes, which were securities.

During the relevant period, NatAlliance Securities allegedly prohibited its employees from participating in private securities transactions without the approval of senior management. James Etter allegedly failed to disclose his transactions to NatAlliance and inaccurately claimed on a firm compliance questionnaire that he had not engaged in private securities transactions in the last 12 months.

Further, the AWC alleged that James Etter engaged in an outside business activity (OBA) without disclosing it to NatAlliance Securities or receiving approval. This OBA allegedly involved providing business development and due diligence services to a solar equipment company, and James Etter allegedly received $66,000 in compensation.

The AWC concluded that these allegations constituted violations of FINRA Rules 3280, 3270, and 2010.

FINRA Rule 3280

FINRA Rule 3280 requires brokers to seek approval from their firm before engaging in private securities transactions.

FINRA Rule 3270

FINRA Rule 3270 requires brokers to disclose to their firm any business activities they engage in outside it, including any compensation they expect to receive.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade. Violations of many other rules may also qualify as violations of FINRA Rule 2010.

Sanctions

James Etter consented to the following sanctions:

• 4-month suspension from associating with FINRA members
• $10,000 fine

His suspension began on November 18, 2024, and will end on March 17, 2025. You can access the full AWC here.

Resignation from NatAlliance Securities

On April 20, 2023, James Etter resigned from NatAlliance Securities after FINRA allegedly found that he engaged in a private securities transaction that had not been approved by the firm.

Background Information

James Etter 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

He previously worked for the following firms:

• NatAlliance Securities (CRD#:39455)
• Morgan Stanley Smith Barney (CRD#:149777)
• Morgan Stanley & Company (CRD#:8209)

Kurta Law Can Help

If you worked with James Etter 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.