James Flynn Involved in More Than 50 Investor Disputes

James Flynn (CRD #: 3082615), a broker formerly registered with IFS Securities, has been barred by FINRA and involved in more than 50 investor disputes, according to his BrokerCheck record, accessed on June 14, 2023. Read on to learn more about his alleged conduct as a broker.

Pending Investor Dispute

On May 4, 2023, an investor alleged that James Flynn overconcentrated their investment portfolio in risky, illiquid, and high-commission investments that were unsuitable for the client’s risk tolerance. The client seeks $63,830 in damages in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that sufficiently suit an investor’s financial goals. Brokers must consult the investor’s profile, which describes their tax status, risk tolerance, and other information.

Investors who rely on brokers for recommendations may be able to recover their losses through FINRA arbitration.

FINRA Suspension

On July 14, 2022, James Flynn received a Letter of Suspension alleging that he failed to comply with an arbitration award/settlement agreement or to adequately respond to a FINRA request for information about the status of his compliance.

This suspension took effect on July 14, 2022, and will continue until the required payment is made or discharged.

On March 1, 2019, James Flynn was named in a complaint alleging negligent supervision, negligence relating to unsuitable investment recommendations, and violations of the Michigan Uniform Securities Act and Florida Securities and Investor Protection Act.

An arbitration award made James Flynn liable for $322,990 in damages plus interest. You can read that arbitration award here.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish supervisory systems to ensure their compliance with securities regulations. Firms must appoint supervisors and provide them with Written Supervisory Procedures (WSPs) to follow.

Settled Disputes

Twenty-three disputes, filed from 2018-2021, alleged that James Flynn recommended unsuitable investments, including alternative investments and private placements. Many of these disputes alleged that these investments were illiquid, speculative, and/or too risky for the clients. These disputes were settled for a total of $15,944,725.17.

Ten disputes, filed from 2018-2022, alleged that James Flynn recommended unsuitable investments and made misrepresentations and/or omissions relating to these investments. These ten disputes were settled for a collective $2,515,585.9.

Four disputes filed on December 10, 2021, alleged that James Flynn made unsuitable purchases of ATEL 14, LLC. These disputes were settled for a total of $68,522.73.

Disputes Alleging Unauthorized Trading

Disputes filed on June 26, 2015, and March 3, 2017, alleged that James Flynn executed unauthorized trades. The 2015 dispute also alleged that he made unsuitable stock trades; this was settled for $52,500.

Allegations Involving Manipulation of Financial Information

On June 15, 2020, an investor named James Flynn in allegations that certain account documents contained fictitious financial information. The client received a settlement of $150,000.

Two disputes filed on April 9, 2020, alleged that he fabricated financial information and recommended unsuitable investments. These disputes were settled for $110,000.

On January 6, 2020, an investor alleged that James Flynn submitted paperwork that incorrectly indicated the client had more assets than they actually held, resulting in the client holding investments they were not qualified for. They received a settlement of $90,000.

Four disputes, filed from March-November 2019, collectively alleged that James Flynn made misleading investment guarantees, exaggerated financial information, made misrepresentations and/or omissions, and facilitated unsuitable investments. These disputes were settled for a total of $377,850.

Other Allegations

On September 1, 2021, an investor alleged that James Flynn misrepresented alternative investments. The client received a settlement of $318,000.

On March 18, 2019, a client alleged that James Flynn advised them to liquidate their portfolio and invest in unsuitable, illiquid, high-risk, and high-fee investments. An arbitration award made him liable for $322,990 in damages. You can read the arbitration award here.

A dispute filed on September 25, 2018, named James Flynn in allegations of common law fraud, alternative investments, and negligent misrepresentation. This dispute was settled for $125,000.

On August 24, 2018, an investor named James Flynn in allegations of securities statute violations and the use of assets from their 401k account to purchase unsuitable and illiquid investments. The client received a settlement of $90,000.

On December 20, 2016, an investor alleged that James Flynn recommended unsuitable real estate investment trusts (REITs). The client further alleged that they should not have been allowed to invest their full retirement funds into Prudential annuities. They received a settlement of $196,788.18.

FINRA Rule 2020

FINRA Rule 2020 forbids the use of manipulative or deceptive tactics, like the misrepresentation or omission of material facts, as they relate to the purchase and sale of securities.

FINRA Rule 3260

FINRA Rule 3260 forbids brokers from conducting discretionary trading outside of accounts approved in advance by their client and firm.

FINRA Rule 2150

FINRA Rule 2150 prohibits brokers from guaranteeing investors against loss.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Bar by FINRA

On June 1, 2018, James Flynn was suspended by FINRA for allegedly failing to respond to a request for information. This suspension converted to a permanent bar on September 4, 2018.

Terminations from IFS Securities and Voya Financial Advisors

On February 20, 2018, James Flynn was fired from IFS Securities after an investor alleged that he engaged in unauthorized trading.

On February 10, 2017, Voya Financial Advisors fired James Flynn for allegedly providing misleading information during a firm investigation.

Denied Disputes

Six disputes filed in 2015 and 2018 collectively alleged that James Flynn made unsuitable recommendations of investments (including alternative investments, variable annuities, and REITs), made misrepresentations, and omitted material facts to investors. These disputes were all denied by his firms.

Another denied dispute, filed on December 11, 2018, alleged that James Flynn overconcentrated the client’s assets and failed to discuss surrender charges and benefit riders for a policy.

Background Information

James Flynn has passed the following exams

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination

In the past, he worked for the following firms:

• IFS Securities (CRD#:40375)
• Voya Financial Advisors (CRD#:2882)
• Capital Investment Group (CRD#:14752)
• Brookstone Securities (CRD#:13366)
• UVEST Financial Services Group (CRD#:13787)
• Wachovia Securities (CRD#:19616)
• BB&T Investment Services (CRD#:33856)
• The O.N. Equity Sales Company (CRD#:2936)
• InterSecurities (CRD#:16164)
• Sunset Financial Services (CRD#:3538)
• VSR Financial Services (CRD#:14503)

Kurta Law Can Help

If you worked with James Flynn 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 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.