Alex James (CRD#: 5630825), a former registered representative with Allstate Financial Services LLC (CRD#: 18272) in West Palm Beach, Florida, is currently being investigated by the Financial Industry Regulatory Authority (FINRA) for potentially undisclosed outside business activities, according to his BrokerCheck record accessed on March 16, 2020.
What happened to lead to this FINRA investigation? On March 6, 2020, FINRA recommended that disciplinary action be brought against Alex James for violating FINRA Rule 3270 and FINRA Rule 2010. FINRA Rule 3270 mandates that brokers receive written approval from their member firms before engaging in any outside business activities. FINRA alleges that Alex James did not do that, instead engaging in private securities activities totaling approximately $667,000. FINRA Rule 2010 mandates that brokers act in a professional manner, and FINRA alleges that Alex James violated Rule 2010 by allegedly providing false information to his firm on annual compliance questionnaires, stating that he reported all outside business activities when that was allegedly not true.
The Detailed Report of Alex James’s BrokerCheck record lists four outside business activities:
- Alex James helps the St. Louis Cardinals during their March visit to Roger Dean Stadium in Jupiter, Florida.
- Alex James sells fixed insurance products through the company Trading Commissions.
- Alex James is the owner of Generositrend LLC, a social media platform designed to help celebrities connect with their fans. Alex James writes that the company is not currently operating and is “just a stagnant holding company.”
- Alex James buys and sells items through eBay and has established an LLC entitled JX2 Ventures LLC to do so.
Alex James has also been involved in a customer dispute over outside business activities. On March 26, 2018, Alex James became involved in a customer dispute in which clients alleged that he enticed them to invest in a startup in 2013, and that this was not approved by his member firm. The clients further alleged that Alex James sold them unsuitable annuities. The clients alleged that Alex James engaged in misappropriation, selling away, and unsuitable investment recommendations. The dispute was ultimately settled for $75,000.
Alex James has passed the SIE – Securities Industry Essentials Examination and Series 6 – Investment Company Products/Variable Contracts Representative Examination. In addition to Allstate Financial Services LLC (CRD#: 18272), Alex James has also worked for Voya Financial Advisors, Inc. (CRD#: 2882) and Pruco Securities LLC (CRD#: 5685).
If Alex James was your broker and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta to learn about your options for recovery. Call (877) 238-4175 or email email@example.com for your free case consultation with a securities attorney.