FINRA barred former Financial Network Investment Corporation (FNIC) and Triad Advisors broker James D. Grimes for improperly transferring $306,000 and wrongfully converting over $250,000 of those funds for personal use.
Disciplinary Proceeding #2011028219201
According to the findings, while associated with FNIC, Grimes transferred $306,000 from three customer accounts to a fourth customer's business account without any of the customers' knowledge or consent.
The investigation states that Grimes then wrote a series of checks, causing $250,446 to be withdrawn from the business account without its owner's knowledge or authorization. Grimes then allegedly converted the entirety of those funds for personal use.
FINRA found that Grimes was able to withdraw the funds because most of the checks were made payable to "cash" and that Grimes forged the business account owner's signature on each of those checks.
Incidentally, Grimes' actions additionally caused FNIC's books and records to become inaccurate as they contained a series of customer signatures that appeared genuine but were in fact forged.
If you have invested with James D. Grimes or with any broker or financial advisor who has transferred, misappropriated or converted your funds without prior written authorization, knowledge or consent, or who you suspect has forged your signature, and such misconduct has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.