The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker James Travis Flynn. According to his publicly available FINRA BrokerCheck report, James Travis Flynn has been the subject of numerous customer disputes in connection with illiquid alternative investments.
James Travis Flynn was a South Carolina based securities broker. He worked in the securities industry for eighteen years. During his career, he was registered with eleven different securities firms. He is no longer working as a registered securities broker in any fashion.
His Registrations
- VSR Financial Services (1998-1999)
- Intersecurities (1999)
- Sunset Financial Services (1999)
- The O.N. Equity Sales Company (1999-2002)
- BB&T Investment Services (2002-2005)
- Wachovia Securities (2005)
- UVEST Financial Services Group (2005-2006)
- Brookstone Securities (2006-2011)
- Capital Investment Group (2011-2013)
- Voya Financial Advisors (2013-2017)
- IFS Securities (2017-2018)
The Allegations
- In June 2015, a customer alleged that James Travis Flynn engaged in unauthorized trading and unsuitable trading. This case was settled for $52,500 in damages.
- In December 2016, an elderly customer alleged that James Travis Flynn should have prevented them from investing all of their retirement funds into a Prudential annuity in 2010. They also alleged that James Travis Flynn should have prevented them from liquidating their annuity and using the proceeds to purchase an alternative investment known as a non-traded REIT in 2015. This case was settled for $196,788 in damages.
- In February 2017, James Travis Flynn was terminated from his position at Voya Financial Advisors. This followed allegations that he provided misleading information to the firm during an investigation into one of his complaints.
- In May 2017, a customer alleged that the alternative investments they had been placed in by James Travis Flynn were not suitable for them. This case was settled for $167,673 in damages.
- In December 2017, a customer alleged that an alternative investment purchased for them by James Travis Flynn was not suitable. The customer also alleged that Flynn did not adequately disclose the nature of alternative investments or the risks involved. This case was settled for $32,912 in damages.
- In February 2018, he was terminated from his position at IFS Securities. This termination followed allegations that he made trades ahead of authorization.
- In May 2018, a customer alleged the recommendation that James Travis Flynn made to purchase an alternative product in his IRA and joint account was not suitable for his goals and objectives. This case was settled for $75,000 in damages.
- In July 2018, customers alleged that most of their liquid net worth had been invested in illiquid alternative products that James Travis Flynn had recommended. This case was settled for $33,000 in damages.
- In August 2018, an attorney representing a customer alleged that James Travis Flynn transferred assets from a 401k account into illiquid and unsuitable investments that lacked diversification. The allegations also include violation of securities statutes and breach of fiduciary duty. This case was settled for $90,000 in damages.
These were just some of the claims filed because of alleged actions committed by James Travis Flynn.
What are Alternative Investments?
The term alternative investments is used to describe privately traded securities that are not listed on any public securities exchanges. Rather, they are investment pools that raise capital via word of mouth and direct recommendations. These products are very poorly regulated, which in turn creates a great potential for oversight when dealing in these products. Many less than scrupulous securities brokers take advantage of this fact as it gives them the opportunity to misrepresent alternative investments as safe and lucrative. The truth is that these types of securities are incredibly speculative and highly illiquid. This is because these investment pools usually embark on incredibly risky ventures that aren’t suitable for investors with more modest investment objectives. It is also near impossible to determine what the actual market value of these products are. Potential investors are simply given a price to purchase the shares at. However, if an investor wants to liquidate their shares before the investment’s maturity date, they are often offered a third party buy out that is less than what they are told the actual market value of the investment is. This fact often goes undisclosed or misrepresented to potential 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 Travis Flynn, 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.
