James T. Booth Broker Investigation updated 10/2/19

CT financial advisor James T. Booth Reportedly Arrested for Alleged $5 Million Ponzi Scheme

Have you suffered losses investing with James T. Booth of Norwalk, CT? If so, the securities attorneys at the White Law Group may be able to help you.

According to a press announcement on September 30, Booth was reportedly arrested and charged with an alleged multi-million dollar Ponzi scheme through his financial services firm, Booth Financial Services.

According to the indictment, Booth, 74, purportedly solicited money from over 40 clients of Booth Financial and falsely promised to invest their money in securities offered outside of their ordinary advisory and brokerage accounts.  Instead, he allegedly misappropriated nearly $5 million to pay his own personal and business expenses.

According to the Department of Justice, from 2013 through 2019, Booth purportedly directed some of his clients to write checks or wire money to an entity named “Insurance Trends, Inc.”  Instead of investing his clients’ funds, Booth, who reportedly controlled the bank account of Insurance Trends, Inc., allegedly used the funds to pay personal and business expenses.

In May 2019, FINRA reportedly began an investigation after receiving information from LPL following an internal investigation of Booth.

According to his FINRA broker report, Booth was a registered representative with LPL Financial in Norwalk, CT from February 2018 until June 2019 he was reportedly dismissed after he “admitted to course of conduct beginning while associated with previous member firm involving the misappropriation of client funds for his personal and business use.” Prior to his registration with LPL, Booth was reportedly affiliated with Invest Financial Corp. in Norwalk, CT for thirteen years.

FINRA has reportedly barred former financial advisor Booth from working in the securities industry after allegations.

Booth, of Norwalk, Connecticut, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, one count of securities fraud, which carries a maximum sentence of 20 years in prison, and one count of investment adviser fraud, which carries a maximum sentence of five years in prison, according to the Department of Justice press announcement.

Potential Lawsuits to Recover Losses

The White Law Group is investigating potential lawsuits regarding the liability that Booth’s former employers may have for failure to properly supervise him.

When brokers abuse client accounts and conduct transactions that violate securities laws, such as churning, unauthorized trades, or misappropriating customer funds, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.

Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

We represent investors in FINRA arbitration claims in all 50 states, including Connecticut. Our attorneys have recovered millions of dollars from many brokerage firms in the past.

If you have suffered losses investing with James T. Booth, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.

For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.

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