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

Return to Archive

TESTIMONIALS

Previous
Next

If you find yourself in trouble with the regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

May 8, 2025
All 50 States Now Aligned on Annuity Sales Standards

The annuity industry officially has secured uniformity in sales regulations across all 50 states.

May 7, 2025
Jury Finds Investment Advisor Liable for Failing to Disclose Annuity Commissions

A federal jury in Massachusetts has found investment adviser Jeffrey Cutter and his firm, Cutter Financial Group, liable for violating federal securities law by failing to disclose significant upfront commissions and conflicts of interest related to an annuity replacement scheme.

May 6, 2025
SEC Charges Three Individuals in $284 Million Arizona Sports Complex Bond Fraud by Legacy Cares

The Securities and Exchange Commission has filed a civil enforcement action against Randall “Randy” Miller, Chad Miller, and Jeffrey De Laveaga for allegedly defrauding investors in two municipal bond offerings that raised $284 million.