Jim Eugene Scala Jr (CRD #2493873) Has Regulatory, Customer Dispute, and Criminal Disclosures on FINRA BrokerCheck

Jim Eugene Scala Jr (CRD #2493873) is a broker with disclosure events on FINRA BrokerCheck. We reviewed his BrokerCheck report on February 8, 2026. It reflects one regulatory event, four customer disputes, one criminal disclosure, and one termination. If you invested with Jim Eugene Scala Jr and have concerns, keep reading.

BrokerCheck link: BrokerCheck

BrokerCheck report: BrokerCheck Report (PDF)

Regulatory Action(s)

Jim Scala’s FINRA BrokerCheck report reflects one regulatory event. A summary is below:

On January 18, 2013, FINRA reported a regulatory action involving Jim Scala. FINRA alleged he engaged in private securities transactions by selling shares he owned in an alternative energy company to several individuals, including customers. FINRA listed the rules as FINRA Rule 2010 and NASD Rule 3040. The matter was resolved by an Acceptance, Waiver & Consent (AWC). FINRA fined him $5,000 and imposed a 15-business-day suspension in all capacities from February 19, 2013 through March 11, 2013.

Investor Disputes / Customer Complaints

Jim Scala’s FINRA BrokerCheck report reflects four customer dispute disclosures. A summary of two disputes is below:

On December 18, 2025, the estate of a client alleged Regulation Best Interest violations during the account’s tenure from June 2020 through December 2022. Jim Scala’s FINRA BrokerCheck report lists alleged damages of $1,180,000. The dispute is pending in FINRA arbitration (Docket No. 25-02742).

On October 17, 2005, a customer alleged stop orders were not placed. Jim Scala’s FINRA BrokerCheck report lists alleged damages of $19,200 and the product type as Equity – OTC. The matter was filed as NASD arbitration No. 06-01396 and was reported as settled on June 1, 2006 for $24,000.

BrokerCheck lists two additional customer disputes for Jim Scala. One was reported as withdrawn or closed without action. Another older dispute appears as pending.

Employment Separation After Allegations

Jim Scala’s FINRA BrokerCheck report reflects one employment separation after allegations. A summary is below:

On January 23, 2008, National Securities Corporation discharged Jim Scala. The firm alleged he was absent without notice or explanation for five business days or more. The disclosure also states he was terminated for non-compliance with industry rules and the firm’s policies and procedures.

Criminal Disclosure

Jim Scala’s FINRA BrokerCheck report reflects one criminal disclosure. A summary is below:

On December 16, 1994, Jim Scala was charged in Suffolk County District Court in Central Islip, New York. The disclosure states the charge involved aggravated unlicensed operation of a motor vehicle and was originally listed as a felony. The charge was amended to a misdemeanor. BrokerCheck lists the disposition as a guilty plea, a $525 fine, and probation.

Rule Summary #1: FINRA Rule 3280 (Private Securities Transactions of an Associated Person)

FINRA Rule 3280 requires an associated person to give written notice before participating in a private securities transaction outside the scope of the firm. The firm may need to approve the activity and supervise it. Regulatory actions involving “selling away” often focus on whether the firm was notified and whether the transaction was reviewed.

Rule Summary #2: FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade)

FINRA Rule 2010 is a broad conduct rule that requires high standards of commercial honor and just and equitable principles of trade. FINRA often cites it in cases involving undisclosed activities or improper conduct. When a broker acts outside firm supervision, disputes may raise questions about whether those standards were met.

Why This Matters to Investors (Regulation Best Interest)

Regulation Best Interest (Reg BI) is a U.S. securities regulation. It strengthens the standard of conduct that broker-dealers owe to retail investors. It applies when they recommend securities transactions or investment strategies. The U.S. Securities and Exchange Commission adopted Reg BI. It became effective on June 30, 2020. Reg BI aims to protect investors while preserving access to brokerage products and services.

Reg BI requires broker-dealers and financial advisors to act in a retail customer’s best interest at the time of a recommendation. They must not place their own financial or other interests ahead of the customer’s. This standard is higher than the older “suitability” rule. Suitability meant a recommendation only had to be appropriate. It did not have to be the best option or free of conflicts.

Reg BI has four key obligations:

Disclosure Obligation – Broker-dealers must disclose material facts about the relationship and the recommendation. This includes fees, the scope of services, and conflicts of interest.

Care Obligation – Broker-dealers must use reasonable diligence, care, and skill. They must consider costs, risks, and alternatives when making a recommendation.

Conflict of Interest Obligation – Firms must identify conflicts of interest. They must disclose them and mitigate or eliminate them. This includes conflicts that create incentives to favor one product over another.

Compliance Obligation – Firms must maintain policies and procedures. Those policies should be designed to ensure compliance with Reg BI as a whole.

Reg BI applies to each recommendation. It is not a continuous duty like the fiduciary standard for registered investment advisers. Even so, it narrows the gap. It puts more focus on costs, conflicts, and investor-focused decision-making.

Overall, Regulation Best Interest promotes transparency. It also aims to improve the quality of investment recommendations. It is designed to reinforce trust between retail investors and broker-dealers in the U.S. securities markets.

Background Information (from BrokerCheck)

Based on Jim Scala’s FINRA BrokerCheck report:

Is currently registered with PHX Financial, Inc.

Has passed the Securities Industry Essentials (SIE) exam. Jim Scala has also passed Series 7 and Series 63.

Was previously registered with firms that include Dalton Strategic Investment Services Inc., Brookstone Securities, Inc., and National Securities Corporation.

Kurta Law Can Help

If you have worked with Jim Scala and you have concerns about his activity, Kurta Law may be able to help you evaluate your legal options. To speak with Kurta Law, call 877-600-0098 or email info@kurtalawfirm.com.

Helpful resources: Selling Away | What is Securities Fraud?

For nearly 20 years, Kurta Law has advocated for investors and helped hold financial professionals accountable. Our firm represents clients nationwide in securities arbitration and related disputes. If you believe a broker or firm mishandled your account, an attorney can review the facts and explain possible next steps.