Jump to Navigation
Life Member | Million Dollar Advocates-Forum | Multi-Million Dollar Advocates Forum | The Top Trial Lawyers In America TM

James Douglas Grimes Banned by FINRA for Forgery and Misappropriating Funds

James Douglas Grimes, formerly with Washington, Pennsylvania based Financial Network Investment Corporation, submitted an offer of settlement after the Financial Industry Regulatory Authority (FINRA) entered findings that he transferred $306,000 from customers' accounts to a business account in the name of another customer without any of the customers' consent or knowledge. Mr. Grimes consented to sanctions and to FINRA's findings that he affected the unauthorized transfers by submitting written journal request forms to his firm that contained forged client signatures. Mr. Grimes wrote numerous checks payable to cash totaling $250,446, withdrew funds from the business account, and converted the proceeds for his own use. Mr. Grimes forged the signature of the holder of the business account on the checks. Mr. Grimes, of Lawrence, Pennsylvania, was banned from association with any FINRA member in any capacity.

FINRA's findings also stated that the firm kept the journal request forms and the numerous checks as part of its books and records. Those documents appeared to contain genuine customer signatures. However, the signatures were forged so the records were therefore inaccurate. By falsifying journal requests and checks, Grimes caused his firm's books and records to be inaccurate.

Broker-dealers must establish and implement a reasonable supervisory system to protect customers from broker misconduct. If broker-dealers do not establish and implement a reasonable supervisory system, they may be liable to investors for damages flowing from the misconduct. Therefore, investors who have suffered damages due to Mr. Grimes's fraudulent activity can bring forth claims to recover losses against Financial Network Investment Corporation, which should have prevented Mr. Grimes from committing the described illegal activity.

Have you suffered losses in your Financial Network Investment Corporation brokerage account? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against Financial Network Investment Corporation stockbrokers who may have engaged in misconduct and caused investors losses.

The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

No Comments

Leave a comment
Comment Information
Rated by Super Lawyers | Robert W. Pearce | visit superlawyers.com
LexisNexis | Martindale-Hubbell | AV PREEMINENT |For Ethical Standards and Legal Ability | 2013 | Robert Wayne Pearce

E-Mail Mr. Pearce

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Contact Information

1499 West Palmetto Park Road
Suite 400
Boca Raton, FL 33486
Email: pearce@rwpearce.com
Toll Free: 800-732-2889
Phone: 561-338-0037
Fax: 561-338-9310
Map and Directions