James Simpson Barred By FINRA

James Simpson (CRD #: 424828), a former broker in Toledo, Ohio, has been barred by FINRA, according to his BrokerCheck record, accessed on May 9, 2022. Details on his resignation as well as two other investor disputes are provided below.

FINRA Bar 

On November 19, 2021, James Simpson consented to the findings that he refused to provide the information requested during the course of a FINRA investigation. FINRA was investigating allegations that James Simpson misappropriated investor funds or recommended unsuitable investments. You can read a copy of the AWC here. 

Employment Disclosure: Resignation from Equitable Advisors

On August 19, 2021, James Simpson was permitted to resign from Equitable Advisors while under investigation. The firm was investigating an investor complaint that alleges he misappropriated funds. The client is also questioning the suitability of an indexed annuity sold outside of the firm. Firms are required to investigate suspicious transactions as part of their duty to supervise their brokers.

Brokers are not allowed to sell investments outside of their firm unless they have their firm’s written authorization. This type of misconduct is also called “selling away,” and it is prohibited under FINRA Rule 3040.

Investor Disputes

Investors should also review James Simpson’s investor disputes:

Unsuitable Variable Annuity Dispute

On August 6, 2021, an investor alleged that James Simpson sold her an unsuitable variable annuity and misled her about a mutual fund investment.

• Variable annuities are often unsuitable because of their complexities. Many variable annuities do not provide enough of a benefit to the investor to justify their fees. Brokers must consider fees when they evaluate whether an investment is suitable to an investor according to FINRA Rule 2111. FINRA Rule 2111 states that brokers can only recommend investments that suit their client’s financial goals.
• Brokers are not allowed to mislead their investors. The Securities Act of 1933 prohibits the use of fraud, deceit, or manipulation in the sales of securities.

Misrepresentation Dispute

There is another investor dispute that alleges James Simpson misrepresented certain investments to his clients. On April 1, 2009, an investor alleged that James Simpson misrepresented the sale of various life insurance policies. The investors asked the firm to investigate the matter, but the firm denied the dispute. “Denials” simply mean that the firm denies their broker engaged in misconduct. A denial does not indicate a third party reviewed the matter. Investors can still try to recover their losses following a denial.  

Background Information

James Simpson has passed the following exams:

• Series 65 Uniform Investment Adviser Law Examination
• Series 63 Uniform Securities Agent State Law Examination
• Securities Industry Essentials Examination
• Series 1 Registered Representative Examination

James Simpson has worked for the following firms:

• Equitable Advisors (CRD #: 6627)
• The Equitable Life Assurance Society of the United States (CRD #: 4039)

Kurta Law Can Help 

If you lost money after working with James Simpson, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors 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.