(FINRA Case #2014040644001)
James William Flower (CRD #2817701, Melville, New York) – An AWC (Accept, Waiver & Consent) was issued in which Flower was suspended from association with any FINRA member in all capacities for three months and required, within 60 days of the date of the Notice of Acceptance of the AWC, to attend and satisfactorily complete 10 hours of continuing education concerning complex products, which includes exchange-traded notes, by a provider not unacceptable to FINRA. Within 30 days of following completion of such training, Flower will submit written proof that the continuing education program has been satisfactorily completed. In light of Flower’s financial status, no monetary sanction has been imposed.
Without admitting or denying the findings, Flower consented to the sanctions and to the entry of findings that he recommended that 13 of his customers invest in a highly volatile exchange-traded note without having a reasonable basis for recommending the transactions.
The findings stated that at the time Flower was recommending the exchange-traded note, he incorrectly believed that it traded inverse to the S&P 500 index. This erroneous perception led him to recommend that customers purchase and hold the exchange-traded note as a hedge to an anticipated overall market decline.
Based on Flower’s recommendations, 13 customers suffered losses in excess of $249,000 after holding their shares for periods ranging from two weeks to over one year. Flower lacked a sufficient understanding of the mechanics of the exchange-traded note to form a reasonable basis upon which to recommend the purchase of it to his customers.
The suspension is in effect from July 3, 2017, through October 2, 2017.
Flower currently works for SW Financial. In Flowers work history, of the 16 different firms that he has worked for since 1997, Nine of have been expelled by FINRA.
If you feel you have been misled or taken advantage by James Flower or any Broker and wish to discuss legal action, please contact Darren Blum at 1-877-786-2552 (1-877-STOCK LAW), www.stockattorneys.com for a free consultation.