Did you lose money investing with James Armstrong Jr (CRD# 4517907)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with James Armstrong Jr. If you suffered losses investing with James Armstrong Jr, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
As of October 13, 2020, James Armstrong Jr’s FINRA BrokerCheck Report contains the following:
1 Regulatory Event(s)
UPDATE 10/13/2020: According to FINRA’s February 2019 Disciplinary Actions: “James Edward Armstrong Sr. (CRD #720549, Leland, North Carolina) and James Edward Armstrong Jr. (CRD #4517907, Wake Forest, North Carolina) December 4, 2018 – An AWC was issued in which Armstrong Sr. was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in any principal capacity for two months. Armstrong Jr. was fined $7,500 and suspended from association with any FINRA member in any principal capacity for three months. Without admitting or denying the findings, Armstrong Sr. and Armstrong Jr. consented to the sanctions and to the entry of findings that they failed to reasonably supervise a registered representative. The findings stated that the representative made unsuitable investment recommendations to elderly customers resulting in more than $200,000 in trading losses across the customers’ accounts. Armstrong Jr. failed to reasonably supervise the representative by ignoring red flags, which indicated possible unsuitable trading by the representative, and failing to review his email correspondence, which would have revealed that this representative received a customer complaint and alleviated another customer’s concerns by making misleading and promissory statements. Armstrong Sr. failed to reasonably supervise the representative by failing to appropriately address concerns elevated to him by Armstrong Jr. regarding the representative’s trading activity in customer accounts. Although Armstrong Sr. delegated day-to-day supervision of the representative to Armstrong Jr., Armstrong Sr. was ultimately responsible for the supervision of representatives at his branch office. Armstrong Sr.’s suspension is in effect from December 17, 2018, through February 16, 2019. Armstrong, Jr.’s suspension is in effect from January 7, 2019, through April 6, 2019. (FINRA Case #2015044939902)
Current and Previous Registrations
05/29/2002 – PRESENT ROYAL ALLIANCE ASSOCIATES, INC. (CRD#:23131) WAKE FOREST, NC
Due Diligence Requirement
FINRA requires broker’s to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokers and the brokerage firms they work for that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
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