LPL Broker James Booth Defrauds, Steals From Clients

Soreide Law Group provides this latest update surrounding a problem securities broker by the name of James Thomas Booth (CRD#: 1906145, Norwalk, Connecticut). Notably, Financial Industry Regulatory Authority (“FINRA”) reports that 36 investors – including LPL Financial and Investment Financial Corporation clients – brought lawsuits or complaints about the securities broker. Not only that, but FINRA, SEC and the State of Connecticut brought enforcement actions against Booth in regard to his securities fraud. Here’s more.

James Booth Supposedly Subjects Client Assets To Ponzi Scheme

Apparently, James Booth worked for Cadaret Grant from 1993 to 2005. Additionally, he worked for Invest Financial Corporation from 2005 to 2018, and LPL Financial Corporation from 2018 to 2019. Notably, in August 2019, a client brought a dispute about Booth’s actions at those firms. Mainly, the client signaled that Booth used a Ponzi scheme to steal the client’s assets. Evidently, because of this alleged Ponzi scheme, these securities firms collectively paid the client $2,612,358.15 to settle in July 2020.

LPL Financial, Invest Financial Corporation Settle Dispute Over Booth’s Conversion

Also, in November 2019, a client of LPL Financial and Invest Financial Corporation brought a FINRA Arbitration Claim. Apparently, Booth converted (misused) funds for several years. Supposedly, Booth put together a Ponzi scheme through establishing multiple companies. For this reason, Invest Financial Corporation and LPL Financial collectively paid this client $120,000 to settle the matter in June 2020.

James Booth Allegedly Steals Client Funds

Evidently, a second client of LPL Financial and Invest Financial Corporation filed a lawsuit about James Booth in November 2019. Apparently, this client indicated that Booth enlisted shell companies to create a Ponzi scheme. Supposedly, this client was a victim of that Ponzi scheme and Booth’s conversion of assets. Because of this, the client received a $35,000 payment to settle the matter in June 2020.

Connecticut Orders Booth To Cease And Desist

Also, FINRA reports that in June 2020, the Connecticut Banking Commissioner revoked James Booth’s registrations or privileges to be a securities broker or investment adviser. Namely, Connecticut reveals that from 2013 to 2019, Booth violated securities laws. Supposedly, Booth solicited LPL Financial and Investment Financial Corporation clients to purchase investments and making their payments to Insurance Trends. It seems that Booth ultimately misappropriated $5,000,000 in funds.

SEC Bars James Booth After He Pleads Guilty To Securities Fraud

Moreover, effective November 2019, SEC barred James Booth as an investment adviser or securities broker. Namely, Booth violated Exchange Act and Adviser Act – both federal laws. Notably, in October 2019, Booth pleaded guilty to one count of securities fraud in which he took 40 of his investors for millions.

Apparently, James Booth lied to investors and used their money for his own purposes instead of investing the money as he promised them. Apparently, some of the prior investors received payments from Booth by his fraudulent acquisition of new investor funds. Also, SEC reported that Booth used fabricated account statements to make investors believe that their money was put to work.

Losses From Broker James Booth?

Lars Soreide AVVO 2020 Top Lawyer

Have you experienced losses by investing with broker James Booth? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of securities brokers like Booth and his employing brokerage firms.