Investors Solicited by Former Stockbroker, James T. Flynn, May Have Recourse to Recover Losses
As disclosed by FINRA, former Greenville, South Carolina stockbroker, James Travis Flynn (CRD# 3082615), has been named or otherwise involved in 57 customer disputes. According to publicly available information, Mr. Flynn allegedly steered many of his clients into complex and illiquid investments including non-traded REITs and variable annuities, and in some cases, his customers reportedly lost up to 80% of their investment principal. Since September 2018, Mr. Flynn has been barred from associating with any FINRA member in all capacities, and as recently reported, he is no longer located in the United States but is believed to be living in the Dominican Republic.
Mr. Flynn entered the financial services industry in 1998 and was most recently affiliated with IFS Securities (IFS) from February 2017 to February 2018. Previous to that, he was employed by Voya Financial Advisors, Inc. (Voya) from May 2013 to February 2017. As disclosed through FINRA BrokerCheck, Mr. Flynn was terminated from his employment with IFS in February 2018 in connection with allegations that he had purportedly made trades prior to obtaining authorization from a customer. Further, Mr. Flynn was discharged from his employment with Voya in February 2017, after his former employer determined that Mr. Flynn had “provided misleading information to the Firm during a complaint investigation.”
Mr. Flynn has been barred by FINRA since September 2018 due to his alleged failure to respond to a request for information. As of this writing, Mr. Flynn has been named or otherwise involved in a total of 57 customer disputes, including 25 disputes which resulted in a settlement. Of the numerous customer disputes which remain pending, most of these matters concern allegations of “risky, unsuitable, illiquid alternative investments.”
Stockbrokers have a legal obligation to, among other things, ensure that their investment recommendations are suitable, by considering a host of factors including a customer’s investment objectives and risk profile, as well as financial circumstances and liquidity needs. Brokers who fail to adhere to their obligations under FINRA Rule 2111 (Suitability) may be held liable for investment losses sustained. Moreover, a brokerage firm has an affirmative duty to ensure that its brokers are properly supervised, and in instances when a broker engages in misconduct or negligence, the brokerage firm may well be held liable for any losses suffered.
Customers of James T. Flynn who have suffered losses due to investments in high-cost, complex, and illiquid financial products including non-traded REITs and variable annuities may have recourse to recover investment losses in securities arbitration before FINRA, or in some instances, through litigation. The attorneys at Giarrusso Law Group LLC have significant experience in working closely with investors who have suffered investment losses due to the misconduct or negligence of a broker and/or brokerage firm. Investors who wish to discuss a possible claim are invited to contact us by telephone at (201) 771-1115 or by email at info@gialawgroup.com for a no-cost and no-obligation consultation.