IMS Securities, Inc. Broker Jackie Wadsworth Illiquid Investment Losses
Posted on Wednesday, September 11th, 2019 at 8:45 pm
Former IMS Securities, Inc. broker Jackie Wadsworth (CRD# 2342163) barred by FINRA loses case against former customer for negligent supervision and high-risk, illiquid investment losses. Wadsworth has been registered with IMS Securities, Inc. in Houston, Texas since 1994.
In November 2018, FINRA barred Wadsworth after she failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance. Wadsworth is barred from association with any FINRA member in all capacities. Wadsworth failed to request termination of her suspension within three months of the date of the Notice of Suspension; therefore, she is automatically barred from association with any FINRA member in all capacities.
Wadsworth has been the subject of nine customer complaints between 1999 and 2017, one of which was withdrawn, according to her CRD report:
June 2017. “Jackie D. Wadsworth was named in a customer complaint that asserted the following causes of action in the Statement of Claim, First Amended Statement of Claim, Second Amended Statement of Claim, and Third Amended Statement of Claim: aiding and abetting fraud, aiding and abetting breach of fiduciary duty, civil conspiracy, civil RICO, civil RICO conspiracy, and negligent supervision. The causes of action related to Claimants’ allegations that a non-party under the supervision of Respondents induced Claimants to invest in unsuitable, high-risk, illiquid investments, including United Mortgage Trust (“UMT”), United Development Funding II (“UDF II”), and United Development Funding III (“UDF III”).” The customer was awarded $963,836 in damages.
November 2016. “Due diligence, negligence, breach of fiduciary duty.” The customer sought $300,000.00 in damages and the case was settled for $10,000.
August 2016. “Negligence, misrepresentation, failure to supervise, breach of fiduciary duty.” The customer is seeking $1,667,000 in damages and the case is currently pending.
July 2016. “negligence, over-concentration,breach of fiduciary duty, omission of material fact, misrepresentations, failure to supervise, breach of contract, control person liability.” The customer is seeking $3,000,000 in damages and the case is currently pending.
August 2011. “Statement of claim for the arbitration alleges breach of contract, breach of fiduciary duty, failure to supervise, misrepresentation.” The customer sought $600,000 in damages and the case was settled for $17,500.
March 2003. “Allegation is a breach of contract and deceptive trade practices. According to claimants, registered representative Mr. Harn moved their life savings from conservative fixed income investments to riskier private placements and there was a lack of supervision on the part of ms. Wadsworth and IMS Securities, Inc.” The customer sought $1,118,603 in damages and the case was settled for $275,000.
October 2000. “Lack of supervision registered Rep. Candice Gill.” The customer sought $90,000 in damages and the case was settled for $78,000.
March 1999. “Negligence, negligent misrepresentation, fraud, deceptive trade practices plaintiffs seek approximately $900,000 in damages, plus statutory treble damages against multiple defendants.”
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, IMS Securities, Inc. may be liable for investment or other losses suffered by Wadsworth’s customers.
Erez Law represents investors in the United States for claims against IMS Securities, Inc. financial advisor Jackie Wadsworth regarding fraud, negligence and due diligence. If you were a client of IMS Securities, Inc. or another firm, and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.