Barred Former LPL Financial LLC Broker James Booth Faces 35 Customer Complaints for Alleged Ponzi Scheme

Posted on Tuesday, October 1st, 2019 at 2:21 pm    

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Were you the victim of former LPL Financial LLC broker James Booth (CRD# 1906145)? It is alleged that Booth stole funds from several customers during a five-year period through May 2019.

Booth was registered with LPL Financial LLC in Norwalk, Connecticut from February 2018 to June 2019, when he was terminated regarding, “Recently hired independent contractor representative admitted to course of conduct beginning while associated with previous member firm involving the misappropriation of client funds for his personal and business use.” Previously, Booth was registered with Invest Financial Corporation in Norwalk, Connecticut from 2005 to 2018.

In November 2019, Booth was barred by the Securities and Exchange Commission (SEC). In October 2019, Booth pleaded guilty to one count of securities fraud related to participating in any offering of a penny stock.

In September 2019, the SEC filed a complaint against Booth alleging that he conducted a multi-year scheme that defrauded approximately 40 investors out of nearly $4 million. According to Booth’s BrokerCheck profile, “Booth Booth made false or misleading statements to retail investors, telling them their assets would be used to purchase securities. Instead, Booth pocketed the investors’ money, using the investors’ money to pay personal and business expenses and, from time to time, to pay prior investors in order to keep the scheme going. Many of Booth’s clients and customers were unsophisticated investors, including seniors who utilized Booth’s services for their retirement savings. In furtherance of the scheme, Booth fabricated elaborate account statements, which were provided to the investors. The fabricated account statements reflected various ownership positions, transactions and earnings, all to create the false appearance that the investors’ money had been invested as promised; some statements even included fictitious securities and values. When investors requested withdrawals, Booth routinely used assets fraudulently acquired from other investors to cover those withdrawals.”

In July 2019, FINRA barred Booth after he consented to the sanction and to the entry of findings that he converted funds, totaling at least approximately $1 million that multiple customers of his gave him to invest on their behalf, he, however, deposited the funds into an account he controlled and used them for his own personal use.

Booth has been the subject of 35 customer complaints between 2004 and 2019, two of which were closed without action and one was denied, according to his CRD report:

December 2019. “4.Claimants alleges that over several years Booth converted their funds to support a Ponzi scheme using multiple shell companies, which claimants only later discovered in June 2019.” The case is currently pending.

November 2019. “Claimants allege that over several years Booth converted their funds to support a Ponzi scheme using multiple shell companies, which claimants only later discovered in June 2019.” The case is currently pending.

November 2019. “Claimant alleges that over several years Booth converted his funds to support a Ponzi scheme using multiple shell companies, which claimant only later discovered in June 2019.” The case is currently pending.

October 2019. “Claimant alleges that over several years Booth converted her funds to support a Ponzi scheme using multiple shell companies, which claimant only later discovered in June 2019.” The case is currently pending.

October 2019. “Claimants allege that over several years Booth converted their funds to support a Ponzi scheme using multiple shell companies, which claimants only later discovered in June 2019.” The case is currently pending.

September 2019. “Claimant alleges that over several years Booth converted her funds to support a Ponzi scheme using multiple shell companies, which claimant only later discovered in June 2019.” The case is currently pending.

September 2019. “Claimant alleges that over several years Booth converted her funds to support a Ponzi scheme using multiple shell companies, which claimant only later discovered in June 2019.” The case is currently pending.

September 2019. “Claimant alleges that over several years Booth converted his funds to support a Ponzi scheme using multiple shell companies, which claimant only later discovered in June 2019.” The case is currently pending.

September 2019. “Claimant alleges that over several years Booth converted her funds to support a Ponzi scheme using multiple shell companies, which claimant only later discovered in June 2019.” The case is currently pending.

September 2019. “Claimants allege that Booth converted their funds to support a Ponzi scheme where he used multiple shell companies. Claimants discovered the alleged misconduct in June 2019.” The case is currently pending.

September 2019. “Claimant alleges that over several years Booth converted her funds to support a Ponzi scheme using multiple shell companies, which claimant only later discovered in June 2019.” The case is currently pending.

September 2019. “Claimants allege that over several years Booth converted their funds to support a Ponzi scheme using multiple shell companies, which claimants only later discovered in June 2019.” The case is currently pending.

August 2019. “Claimants allege that over several years Booth converted their funds to support a Ponzi scheme using multiple shell companies, which claimants only later discovered in June 2019.” The case is currently pending.

August 2019. “Claimants allege that over several years Booth converted their funds to support a Ponzi scheme using multiple shell companies, which claimants only later discovered in June 2019.” The case is currently pending.

August 2019. “Claimants allege that over several years Booth converted their funds to support a Ponzi scheme using multiple shell companies, which claimants only later discovered in June 2019.” The case is currently pending.

August 2019. “Claimant alleges that Booth converted his funds to support a Ponzi scheme using multiple shell companies, which claimant only later discovered in June 2019.” The case is currently pending.

August 2019. “Claimants allege that Booth converted their funds to support a Ponzi scheme using multiple shell companies, which claimants only later discovered in June 2019.” The case is currently pending.

August 2019. “Claimants allege that Booth converted their funds to support a Ponzi scheme using multiple shell companies, which claimants only later discovered in June 2019.” The case is currently pending.

August 2019. “Claimant alleges that Booth misappropriated funds by depositing her funds into an account for an entity that Booth controlled, which claimant only later discovered in June 2019.” The case is currently pending.

August 2019. “Firm first became aware when SEC subpoena firm for information on August 1, 2019. Claimant alleges that Booth converted his funds to support a Ponzi scheme using multiple shell companies, which claimant only later discovered in June 2019.” The case is currently pending.

July 2019. “Claimants allege that over a period of several years, Booth misappropriated funds by depositing claimants’ funds into accounts for several entities that Booth controlled, which claimants only later discovered in June 2019.” The case is currently pending.

July 2019. “Claimants allege that over a period of several years, Booth misappropriated funds by depositing claimants’ funds into accounts for several entities that Booth controlled, which claimants only later discovered in June 2019.” The case is currently pending.

July 2019. “Claimants allege that over a period of several years, Booth misappropriated funds by depositing claimants’ funds into accounts for several entities that Booth controlled, which claimants only later discovered in June 2019.” The case is currently pending.

July 2019. “Customers allege that over a period of several years, Booth misappropriated funds by requesting the customers to write checks out of their brokerage accounts payable to an entity which Booth controlled, which customers only later discovered in June 2019.” The case is currently pending.

July 2019. “Customer alleges that in December 2018 Booth solicited her to write a check payable to a company controlled by Booth.” The customer sought $28,500 in damages and the case was settled for $27,970.

July 2019. “Customer alleges that in May 2019 Booth solicited her to write a check payable to a company controlled by Booth.” The case was settled for $45,000.

July 2019. “Customers allege that during an unstated time period, Booth misappropriated funds by convincing the customers to invest in a shell company under his control.” The case is currently pending.

July 2019. “Customer alleges that in May 2019 Booth solicited him to write a check payable to a company controlled by Booth.” The case was settled for $18,000.

July 2019. “Customer alleges that between August 2018 and May 2019, Booth caused checks to be issued from his brokerage account payable to an entity that Booth controlled.” TThe customer sought $18,000.

June 2019. “Customer’s allege failure to follow trade instructions, which resulted in a loss.” The customer sought $50,651.00 and the case was settled for $50,651.

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, Invest Financial Corporation may be liable for investment or other losses suffered by Booth’s customers.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If 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.

Disclaimer: Clients are responsible for costs. Contingency fee is calculated before deducting costs incurred in the case.