FINRA Bars Former Bank of America Advisor For Allegedly Misappropriating Client Funds

Posted on February 3rd, 2022 at 11:44 AM
FINRA Bars Former Bank of America Advisor For Allegedly Misappropriating Client Funds

From the Desk of Jim Eccleston at Eccleston Law: 

The Financial Industry Regulatory Authority (FINRA) has barred a former Bank of America advisor after he allegedly forged a client’s signature and misappropriated $58,000 of client funds.

FINRA further alleges that Joshua Nicholas failed to inform Bank of America that he was involved in an outside business activity (OBA), in which he owned and operated a separate corporate entity. The entity, JDN Capital, primarily traded futures contracts, according to FINRA. Nicholas failed to receive approval from Bank of America and falsely stated that he was not involved with any OBA’s in an annual firm compliance questionnaire. 

Nicholas consented to FINRA’s bar without admitting or denying any findings from the investigation. According to FINRA, the two OBA clients lost at least $1 million due to his futures trading. “In a purported effort to recoup some of their losses, Nicholas convinced” his clients to invest $300,000 in a promissory note with his OBA in order for the entity to invest the additional funds on the client’s behalf, according to BrokerCheck. FINRA alleges that Nicholas transferred nearly $280,000 from his company’s bank account to his personal bank account, and $58,000 of those funds were used on personal expenses. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, finra, bank of america, advisor barred

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