The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker James F. Anderson. According to his publicly available FINRA BrokerCheck report, James F. Anderson has been the subject of multiple customer disputes.
James F. Anderson was a South Dakota based securities broker. He worked in the securities industry for fourteen years. He spent his entire career registered with Ameritas Investment Corp. He is no longer working as a registered securities broker in any fashion.
The Allegations
- In February 2019, James F. Anderson was terminated from his position at Ameritas Investment Corp. following allegations that he took part in selling unapproved indexed annuities and promissory notes away from the firm.
- In April 2019, a customer alleged that James F. Anderson recommended they purchase a highly unsuitable promissory note away from the firm. This case is currently pending. The customer is seeking $400,000 in damages.
- In June 2019, James F. Anderson was officially sanctioned by FINRA. This followed the above mentioned allegations of recommending the unapproved private securities. Anderson allegedly failed to comply with an investigation into the matter, and was in turn barred from acting as a securities broker in any fashion.
- In April 2019, customers alleged that James F. Anderson made negligent misrepresentations about an unregistered security. This case is currently pending. The customers are seeking $2,423,000 in damages.
What Are Promissory Notes?
Promissory notes are contracts between two parties in which the issuing party “promises” to pay back the purchasing party a certain amount–plus interest. Essentially, these notes act more as loans than purchasing actual equity. Some securities brokers like James F. Anderson misrepresent to investors that these products are safer than purchasing equity since they are promised back a predetermined amount as opposed to owning shares of a security where the value can fluctuate. However, most of these brokers fail to inform their customers that the success of these notes is still dependent upon the issuing company’s success. Promissory notes are usually only ever issued by private companies looking to raise capital to expand in some fashion. If the issuing company fails at their venture, they may very easily default on any promissory notes they currently have issued. This fact makes these notes highly unsuitable for most investors.
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.
Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with James F. Anderson, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.
