U.S. Bancorp Stockbroker Engaged in Private Securities Transactions

On November 1, 2018, an OHO (Office of Hearing Officers) decision became final and James Randall Clay has been barred for allegedly engaging in private securities transactions and misrepresenting facts to his member firm and FINRA in violation of FINRA Rules 3270 and 2010.

James Randall Clay was employed with U.S Bancorp from August 2012 until December 2013 when his firm filed a Uniform Termination Notice of Securities Registration (“Form U5”) for violating the firm’s Code of Ethics. FINRA stated that Clay engaged in private securities transactions without written notice or approval from his member firm. On December 7, 2013, while associated with U.S. Bancorp, he started a company under the name “Clay Enterprises, LLC” which he intended to use to manage rental properties. According to FINRA, Clay purchased real estate from an elderly customer from his member firm under terms that only benefited himself. Clay allegedly drafted and signed an agreement to purchase the customers property for $1 million, with the customer financing the amount and borrowed an additional $500,000 to fund the down payment on the property. In addition, Clay established a limited liability company to manage the rental and began collecting rent. The findings stated that Clay never provided notice to his member firm and when the customer’s family complained, he claimed he was not the purchaser and only helped his sister purchase the property.

Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from private transactions, misrepresentations and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like U.S. Bancorp, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.

Have you suffered losses in your U.S. Bancorp account due to private transactions and/or misrepresentations by your broker? Was James Randall Clay your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against U.S. Bancorp stockbrokers who may have engaged in broker 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 35 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.