Alexander James, Formerly of Voya Financial, Suspended for One Year Over Alleged Unapproved Outside Business Activity

James allegedly formed and incorporated a company and failed to report such information to his member firm.

The Sonn Law Group is investigating allegations that Alexander James engaged in unapproved outside business activity. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Alexander Jon James (CRD#: 5630825) was suspended for one year and fined $10,000 by FINRA after consenting to the findings that he engaged in an outside business activity without providing prior written notice to his member firm. 

The findings alleged that in January 2013, James and two other individuals, who were not associated with any member firms, formed and incorporated a company that charged users a monthly subscription fee for access to a website that subscribers could use to seek funding for various projects or ventures (the “Company”). During the relevant period, James helped run the day-to-day operations of the Company and assisted in business development and marketing. For his work, James was paid a total of $16,000.

During this time, Voya Financial’s written supervisory policies required registered representatives to provide a written request to and receive approval from the Firm prior to engaging in any outside business activity. James did not give Voya written notice of the outside business activity. Additionally, he falsely stated on the firm’s annual compliance questionnaires in 2013, 2014, 2015, and 2016, that he had reported all outside business activities to the firm.

In addition to these allegations, FINRA’s findings stated that in May 2014 and again in May 2015, James solicited two Firm customers to invest in the Company by purchasing shares of the Company. James introduced the Firm customers to the potential investments and helped facilitate the transactions by meeting with them to discuss the investments and providing them with the purchase agreements. The Firm customers’ two investments totaled $667,000.

During this time, the Voya Financial’s written supervisory procedures required registered representatives to request in writing and obtain written approval prior to participating in private securities transactions. However, James did not provide written notice to, or obtain written approval from, the Firm prior to participating in the private securities transactions. Additionally, on the Firm’s 2014, 2015, and 2016 annual compliance questionnaires, James falsely stated that he had reported all private securities transactions to the Firm.

James accepted and consented to FINRA’s findings and to the imposition of a one-year suspension and a fine of $10,000. 

James has one other disclosure on his BrokerCheck report.

March 2018 Customer Dispute

• Status: Settled
• Allegations: “The claimants allege that in 2013 representative solicited them to invest in a start-up, unapproved, outside investment. The claimants also allege that representative sold them annuities which were unsuitable. The allegations include misappropriation, unsuitable investments, selling away and various others.”
• Settlement Amount: $75,000

Contact Us Today

The Sonn Law Group is currently investigating allegations that Alexander James engaged in outside business activities. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.