James Eugene Holmes III – Suspended Broker | Investor Complaints & FINRA Arbitration

James Eugene Holmes III – Investor Lawsuit Investigation

The White Law Group is investigating potential claims involving former Wells Fargo broker James Eugene Holmes III (CRD# 2174697), who has reportedly been sanctioned by FINRA and suspended from acting as a broker. Holmes is currently registered as an investment adviser, but holds no FINRA registrations as a broker.

According to his FINRA BrokerCheck report, Holmes has 32 years of industry experience and has been registered with five firms throughout his career, including:

• Wells Fargo Clearing Services, LLC (2019–2024)

• Stephens Inc. (2011–2019)

• Deutsche Bank Securities Inc. (2001–2011)

• DB Alex. Brown LLC (1997–2001)

• Alex. Brown & Sons Incorporated (1991–1997)

Holmes has three disclosures, including a pending customer dispute, a regulatory action, and an employment separation after allegations.

FINRA Regulatory Action – Willful Violation of Reg BI

On November 24, 2025, FINRA  reportedly issued a final regulatory action against Holmes, concluding that he willfully violated Regulation Best Interest (Reg BI) by recommending high-risk options strategies that were unsuitable for a customer with limited risk tolerance.

FINRA’s Findings:

• Holmes recommended uncovered/naked put options, exposing the customer to significant market risk.

• The customer had informed Holmes she could not afford to lose principal and had no funds to fall back on.

• Holmes allegedly submitted inaccurate account information to his firm regarding the client’s financial situation, experience, and objectives.

• He allegedly exercised unauthorized trading discretion in at least five customers’ accounts, placing more than 250 trades without required written authorization.

• He attested falsely in compliance forms that he had no unapproved discretionary accounts.

Sanctions Imposed:

• $10,000 fine

• Eight-month suspension from associating with any FINRA member in all capacities (Dec. 1, 2025 – July 31, 2026)

• Statutory disqualification, preventing him from associating with a FINRA firm unless approved

Pending Customer Dispute – $500,000 Requested in Damages

A customer dispute filed on April 11, 2025 alleges that Holmes made unsuitable recommendations and implemented an inappropriate overall strategy. The claim seeks $500,000 in damages and remains pending.

Employment Separation After Allegations

Holmes was reportedly discharged by Wells Fargo Clearing Services on September 17, 2024. According to the firm, he was terminated for using trading discretion in multiple client accounts without authorization.

FINRA Arbitration – How Investors Can Recover Losses

If you suffered losses due to unsuitable recommendations, unauthorized trading, or excessive risk-taking by a financial advisor, you may have the right to pursue recovery through FINRA arbitration.

FINRA arbitration is a private dispute-resolution forum where investors can bring claims against brokerage firms for misconduct such as:

• Unsuitable investment recommendations

• Unauthorized trading or improper discretionary activity

• Misrepresentations or omissions

• Breach of fiduciary duty

• Failure to supervise

Brokerage firms can be held liable for the actions of their registered representatives. Investors typically do not need to have dealt directly with FINRA or the advisor’s current employer to pursue a claim.

The White Law Group has handled hundreds of FINRA arbitration claims nationwide and can evaluate whether you have a viable recovery claim.

We Can Help – Free Case Evaluation

If you believe that you suffered investment losses due to the actions of James Eugene Holmes III and Wells Fargo, or another financial advisor, The White Law Group may be able to assist you.

Contact us at (888) 637-5510 for a free consultation, or visit our website to submit your questions online.

Frequently Asked Questions (FAQs)

1. Can I file a claim even if the advisor is no longer registered as a broker?

Yes. Claims are generally filed against the broker-dealer, not the individual advisor alone. Even if an advisor is suspended, previously registered, or working as an investment adviser, you may still be able to pursue recovery through FINRA arbitration.

2. What is Regulation Best Interest (Reg BI)?

Reg BI requires brokers to act in the best interest of retail customers when making recommendations. A willful violation, as alleged in this case, can lead to significant sanctions and may strengthen an investor’s recovery claim.

3. Is FINRA arbitration faster than going to court?

Typically yes. FINRA arbitration is designed to be more efficient than litigation, with most cases resolving within 12 to 18 months. It is also a private process, and hearings are held before neutral arbitrators rather than judges.