FINRA Suspends James Stockton for Alleged Unapproved Private Securities Transactions

James Stockton (CRD #: 1801686), a broker registered with Dempsey Lord Smith, has been suspended by FINRA, according to his BrokerCheck record, accessed on December 12, 2024. If you want to know more about his alleged conduct as a broker, read on.
FINRA Suspension
On November 6, 2024, James Stockton consented to the entry of findings that he allegedly invested $1.43 million through seven private securities transactions in three issuers between June 2021 and September 2022.
According to a Letter of Acceptance, Waiver & Consent (AWC), James Stockton allegedly did not make these investments through his firm, Brokers International Financial Services, or provide the firm with advance written notice of these transactions. He allegedly also falsely responded to a question concerning whether he had participated in private securities transactions without approval on a firm compliance questionnaire.
The AWC alleges that James Stockton engaged in the following private securities transactions:
- Company A: Investment of $250,000 in exchange for 10% membership interests in June 2021, and an additional investment of $25,000 in July 2022.
- Company B: Purchase 2% ownership interest from another investor for $200,000 in June 2021, and an additional purchase of 3% ownership interest from the company’s owner for $225,000 in November 2021.
- Company C: Investments totaling $730,000 in exchange for an aggregate 17% ownership interest between December 2021 and September 2022.
The AWC concluded that these allegations constituted violations of FINRA Rules 3280 and 2010.
FINRA Rule 3280
FINRA Rule 3280 requires brokers to provide written notice to their firm before engaging in private securities transactions.
FINRA Rule 2010
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Sanctions
James Stockton consented to the following sanctions:
- 1-month suspension from associating with FINRA members
- $5,000 fine
His suspension began on December 2, 2024, and will end on January 1, 2025. You can read the full AWC here.
Background Information
James Stockton has passed the following exams:
- Direct Participation Programs Representative Examination – Series 22TO
- Securities Industry Essentials Examination – SIE
- Investment Company Products/Variable Contracts Representative Examination – Series 6
- Uniform Securities Agent State Law Examination – Series 63
James Stockton is a registered broker in 13 states.
He has also worked for the following firms:
- Brokers International Financial Services (CRD#:139627)
- Wilbanks Securities (CRD#:40673)
- Pruco Securities (CRD#:5685)
- The Prudential Insurance Company of America (CRD#:680)
Kurta Law Can Help
If you worked with James Stockton 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 that 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.