January 27, 2016- San Antonio, Texas
James W. Anderson entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that he failed to supervise the sales practices of a stockbroker who engaged in unsuitable trading in the brokerage and advisory accounts of his customers, primarily by inappropriately concentrating his customer’s accounts in low-priced securities.
The AWC alleges that Anderson was aware of red flags that the broker was trading in low priced securities in the San Antonio branch office but that he failed to follow up on the red flags. In September 2012, Anderson was instructed to conduct the audit of MB’s branch office in San Antonio. Notwithstanding his knowledge of potential sales practice violations involving low-priced securities, the audit conducted by Anderson related to non-sales practice issues. such as the review of change of address requests and a check of controls over the receipt of incoming mail, During this audit, Anderson did not review: (1) advisory activity by representatives in this branch office, including MB, (2) trading in low-priced securities, including LB? or (3) suitability of transactions recommended or executed in this branch office,
By failing to appropriately supervise the sales practices of MB, Anderson violated NASD Rules 3010 and 3040(c)(2), and FINRA Rule 2010.
AWC No. 2015045755001
Anderson was fined $15,000 and suspended from association with a FINRA member in all principal capacities for 15 months.
According to FINRA records Anderson was registered with WFG Investments from 8/2009-1/2014.
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