James Etter Fined For Private Transactions

FINRA fined securities broker James Craig Etter [CRD: 5576744, Austin, Texas], according to disclosures on FINRA BrokerCheck. It appears that Etter worked for NatAlliance Securities LLC from January 6, 2012, to April 27, 2023. Keep reading to learn more about Etter’s disclosures.

FINRA Sanctioned Etter For Undisclosed Private Securities Transactions And Outside Business Activities

Evidently, on November 12, 2024, the Financial Industry Regulatory Authority (FINRA) issued Case: 2023078596901 sanctioning James Etter. Specifically, Etter was suspended for four months from associating with any FINRA member in all capacities and fined $10,000. Notably, FINRA alleged that Etter engaged in undisclosed private securities transactions and participated in outside business activities without prior notice to his firm.

Explanation Of Regulatory Action Against James Etter

James Etter, a former General Securities Representative associated with NatAlliance Securities LLC from January 2012 to April 2023, was found to have violated FINRA rules related to outside business activities and private securities transactions. The case originated from a Form U5 submitted by his former firm indicating Etter had voluntarily resigned while under internal review.

Between August 2021 and May 2022, Etter arranged three private securities transactions totaling $110,000 on behalf of two companies. These investments were made in an entity he controlled, and involved promissory notes that constituted securities. He solicited the investments, answered questions from the investors, and processed both paperwork and funds, all without informing or obtaining approval from NatAlliance. At the time, the firm had clear policies prohibiting this activity without senior management's prior authorization. Additionally, Etter inaccurately attested on a January 2023 compliance questionnaire that he had not been involved in such transactions in the preceding 12 months.

Outside Business Activities By Etter

FINRA also stated that from April 2022 to April 2023, Etter provided business development and due diligence services for a solar equipment company, earning approximately $66,000 in compensation. He failed to disclose this outside business activity to NatAlliance, again violating firm policy and FINRA rules.

FINRA determined that these actions violated:

• FINRA Rule 3280 (regarding private securities transactions)
• FINRA Rule 3270 (relating to outside business activities)
• FINRA Rule 2010 (mandating high standards of commercial honor and just principles of trade)

Etter No Longer With Natalliance Securities For Alleged Private Securities Transactions

Also, on April 20, 2023, NatAlliance Securities LLC disaffiliated with Etter. Evidently, NatAlliance Securities LLC alleged that Etter participated in a private securities transaction that was not approved by the firm.

Concerned About Investments Made Through Securities Broker James Etter?

Do you have questions about investing through James Etter? If so, reach out to Soreide Law Group online or at (888) 760-6552 and talk with a securities attorney. Soreide Law Group has recovered losses for investors throughout the United States, works on a contingency fee basis, and advances all costs. Etter and brokerage firms Etter worked for deny any allegations of sales practice violations.