(888) 637-5510

Written by 4:53 pm Blog, Securities Fraud Articles

JW Cole Financial Inc. Regulatory Overview

JW Cole Financial Inc. Review featured by top securities fraud attorneys, the White Law Group

The White Law Group reviews the regulatory history of JW Cole Financial Inc.    

The following is a brief breakdown of publicly available information regarding JW Cole Financial Inc. and its securities sales practices and FINRA regulatory history. FINRA is the self-regulator that oversees brokers and brokerage firms.    

JW Cole Financial Inc. Inc. (CRD#: 124583) is a FINRA registered broker-dealer based in Tampa, Florida which reported revenue of $191 million in 2022.   

JW Cole Broker Misconduct and Customer Complaints    

There have been several cases of registered representatives employed by JW Cole Financial Inc. who were allegedly involved in broker misconduct and fraudulent activities.  Broker dealers are required to supervise their employees. If they fail to do so they may be held liable through a FINRA arbitration claim. 

FINRA barred William G. Downing from associating with any FINRA member in any capacity in 2018. 

He was affiliated with J.W. Cole Financial in Wimberly, TX from December 2012 until June 2017. Downing has 2 employment separations and 4 customer disputes since working in the securities industry. Allegations include excessive trading and unsuitability.   

A broker registered with JW Cole in Melbourne Florida has three customer complaints filed against him from 2020 to 2022 for unsuitable recommendations of non-traded REITs. 

A former JW Cole broker in Novi, Michigan has had three complaints filed against him for allegations of unsuitable REITs and insurance policies. The broker was registered with JW Cole from 2013 until 2021. Before making the moved to JW Cole, the broker was reportedly fired from his former member firm, Cambridge Investment Research for allegedly violating “firm policy regarding the sale of equity-indexed annuities.” 

FINRA Rule 3110 Supervision    

The Financial Industry Regulatory Authority (FINRA) has several rules in place to regulate broker-dealers, including the FINRA Rule 3110 Supervision rule. This rule requires broker-dealer firms to establish and maintain a system to supervise the activities of their associated persons (e.g., brokers) to ensure that they comply with securities laws and regulations.
FINRA Rule 3110 also requires that broker-dealers establish a process for identifying and responding to red flags that may indicate potential violations or misconduct by associated persons. 

FINRA Sanctions JW Cole for LJM Funds  

On March 29, 2021, FINRA censured and fined JW Cole Financial Inc. $50,000 for supervisory violations in connection with the recommendations of an alternative mutual fund – the LJM Preservation and Growth Fund (LJM) The firm was also ordered to pay restitution of $163,527 plus interest and remediate the issues identified in the AWC. 

Between May 2017 and December 2017, JW Cole reportedly failed to reasonably supervise representatives’ recommendations of an alternative mutual fund—the LJM Preservation & Growth Fund (LJM) and permitted the sale of LJM on its platform without conducting reasonable due diligence and without a sufficient understanding of its risks and features.  

The fund apparently pursued a risky strategy that relied, in part, on purchasing uncovered options. In February 2018, LJM’s value dropped 80% during an extreme volatility event and the fund ultimately liquidated and closed, resulting in hundreds of thousands in losses for LJM investors. 

JW Cole Financial Inc.’s representatives purportedly sold approximately $1 million in LJM to customers. 

FINRA BrokerCheck – JW Cole Financial

To access JW Cole Financial Inc.’s full CRD, you can visit https://brokercheck.finra.org.    

FINRA BrokerCheck is a free online tool that allows investors to research the background and professional history of brokers, brokerage firms, and investment advisors. 

With BrokerCheck, you can find out if a broker or firm is registered, if they have any regulatory actions or complaints against them, and if they have disclosed any bankruptcies, criminal convictions, or other red flags. BrokerCheck also provides information on a broker’s education, qualifications, and employment history, as well as any disclosures related to arbitration or civil litigation.    

To use BrokerCheck, simply enter the name or registration number of a broker or firm in the search box on the FINRA website. You can also search for brokers and firms by location or by specific products they offer. Once you have found the broker or firm you are interested in, you can view their profile and review any available information about their background and history.    

Hiring a Securities Attorney   

If you have any questions about investments you made with JW Cole Financial Inc. or if you believe that you have been the victim of securities fraud, The White Law Group may be able to help.  To contact the firm, please call 888-637-5510    

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.          

Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.           

With over 30 years of securities law experience, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions attempt to recover their investment losses.           

Although our offices are in Seattle, Washington and Chicago, Illinois, the firm reviews securities fraud cases throughout the country. For more information on The White Law Group, please visit https://whitesecuritieslaw.com.   




Tags: , , , , Last modified: March 8, 2024