FINRA Reportedly Bars James Knee after Recent Indictment

The White Law Group continues to investigate potential claims involving James Knee and the liability his employers may have for failure to properly supervise him.

According to the Financial Industry Regulatory Authority (FINRA)on May 9, the regulator barred former financial advisor James Knee from the securities industry.

FINRA reportedly requested that Knee appear for on-the-record testimony in connection with an ongoing FINRA investigation. Knee allegedly declined to appear for the requested testimony and stated, through his lawyer, that he will not participate in FINRA’s investigation.

FINRA sent this request on March 30 in connection with an investigation into allegations that Knee misappropriated customer funds while registered with two FINRA broker-dealers.

As we told you earlier this month, Knee was indicted for an alleged fraud scheme in Concord, NH.  He was charged with deceiving his customers and illegally taking money.

Allegations include theft by misapplication, theft by deception, financial exploitation of the elderly and investment adviser fraud in connection with one of his clients, from whom he allegedly stole over $490,397, which he used for personal expenses. The purported scheme took place between 2014 and 2017.

According to his FINRA BrokerCheck report, Knee was registered with Ameriprise Financial Services Inc. in Concord, NH from August 2012 until November 2015. He then worked for Voya Financial Advisors Inc. from 2015 until 2016 when he was fired for “failure to cooperate in an internal investigation relating to potential receipt by the representative of a cash gift from a customer.” Knee has 5 customer disputes listed on his broker report.

Investigating Potential Claims

The White Law Group continues to investigate the liability that Knee’s employer may have for failing to properly supervising him.

Brokerage firms are required to properly supervise their advisors. They must ensure that those advisors are complying with applicable FINRA rules and regulations. If it can be demonstrated that James Knee’s former employers failed to properly supervise him, the firm may be held responsible for the losses in a FINRA arbitration claim.

If you are concerned about your investments with James Knee and would like a free consultation to discuss your litigation options, please call The White Law Group at 1-888-637-5510.

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