Jaime Michael Westenbarger – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Jaime Michael Westenbarger.
The stock market is a device for transferring money from the impatient to the patient… Warren Buffet
BrokerComplaints.com is currently investigating allegations related to Jaime Michael Westenbarger. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Jaime Westenbarger
Jaime Michael Westenbarger is an Investment Adviser. Jaime Michael Westenbarger’s Central Registration Depository (CRD) number is 4625703 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/4625703.
Click here to download a Detailed Audit Report for Jaime Michael Westenbarger.
Jaime Michael Westenbarger has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Jaime Michael Westenbarger’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 7/20/2021
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: Claimant alleges their registered representative recommended unsuitable alternative investments.
- Damage Amount Requested: $26,000.00
- Settlement Amount: $10,000.00
- Arbitration Docket Number:
DISCLOSURE 2 –
- Event Date: 6/18/2021
- Disclosure Detail :: Type: Bankruptcy
DISCLOSURE 3 –
- Event Date: 5/28/2021
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: Claimants allege former registered representative recommended unsuitable investments.
- Damage Amount Requested: $75,000.00
- Settlement Amount: $35,000.00
- Arbitration Docket Number:
DISCLOSURE 4 –
- Event Date: 4/19/2021
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: The Securities and Exchange Commission (\Commission\) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 (\Exchange Act\) and Section 203(f) of the Investment Advisers Act of 1940 (\Advisers Act\) against Jaime M. Westenbarger ( espondent\ or \Westenbarger\). The Commission finds that Westenbarger was a registered representative and investment adviser representative associated with several SEC-registered broker-dealers and investment advisers, respectively, from March 2003 until August 14, 2019. Westenbarger, 43 years old, is currently a resident of Brentwood, Tennessee. On June 24, 2020, the Administrator of the Corporations, Securities & Commercial Licensing Bureau of the Michigan Department of Licensing and Regulatory Affairs, issued and entered a final Consent Order Resolving Notice and Order To Cease and Desist in the Matter of Jaime Westenbarger, CRD# 4625703, Respondent, Complaint 341500 (the \Michigan Order\). The Michigan Order, pursuant to Westenbarger’s consent, required, among other things, that Westenbarger cease and desist from violating the Michigan Securities Act, and prohibited him from conducting any business in Michigan regulated by the Michigan Securities Act or acting as a principal or consultant on behalf of an entity so engaged in that business. The Michigan Order found that when Westenbarger was a registered representative and an investment adviser representative of a registered broker-dealer and a registered investment adviser, respectively, he offered two investors from Michigan an investment in a \corporate note\ for $200,000 and that he accepted a check from these two investors in that amount to be invested in the corporate note. The Michigan Order also found that Westenbarger offered a \short term CD\ investment to another Michigan investor for $60,000 and that he accepted a check from that investor in that same amount to invest in the short term CD. The Michigan Order further found that, in each case, rather than investing the funds as represented, Westenbarger used the funds to pay for personal expenses. The Michigan Order concluded that Westenbarger’s conduct violated Section 501 of the Michigan Securities Act, MCL 451.2501, which prohibits untrue statements of material fact in connection with the offer or sale of securities.
- Resolution: Order
- Sanction Details :: Sanctions: Bar (Permanent)
- Sanction Details :: Registration Capacities Affected: association with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO
- Duration: indefinite
- Start Date: 4/19/2021 Registration Capacities Affected: participation in any offering of a penny stock
- Duration: indefinite
- Start Date: 4/19/2021
DISCLOSURE 5 –
- Event Date: 3/9/2021
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: Claimant alleges unsuitability of alternative investments causing financial harm. The allegations also include violations of rules, negligence, misrepresentations and omissions of material facts, and breach of fiduciary duty.
- Settlement Amount: $7,500.00
- Arbitration Docket Number:
DISCLOSURE 6 –
- Event Date: 3/31/2020
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: Michigan
- Allegations: Respondent Jaime Westenbarger, in connection with the offer and sale of securities, misstated a material fact in connection with the offer and sale of a security when he represented he would invest RM and SM’s funds in a corporate note, but instead used the funds to pay for personal expenses, contrary to section 501 of the Securities Act, MCL 451.2501. Respondent Jaime Westenbarger, in connection with the offer or sale of securities, misstated a material fact in connection with the offer or sale of a security when he represented to AW as power of attorney for LW that he would invest LW’s funds in a certificate of deposit, but instead used the funds to pay for personal expenses, contrary to section 501 of the Securities Act, MCL 451.2501.
- Resolution: Consent Order Resolving Notice and Order to Cease and Desist
- Sanction Details :: Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
- Sanction Details :: Amount: $1,500.00
DISCLOSURE 7 –
- Event Date: 1/21/2020
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Denied
- Disclosure Detail :: Allegations: Client alleges misrepresentation with his annuity purchases in August 2014 and November 2014.
- Damage Amount Requested: $30,636.16
- Arbitration Docket Number:
DISCLOSURE 8 –
- Event Date: 10/11/2019
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: Claimants allege that in May 2018 the representative convinced them to purchase a corporate note and instead used the funds for his own purposes; that in June 2018, the representative convinced them to replace a variable annuity for no apparent reason; and that in July 2019 the representative made an unauthorized purchase of a UIT, which was unsuitable. Allegations include violations of the Michigan Securities Act and FINRA Conduct Rules, breach of contract, breach of fiduciary duty, fraud and conversion.
- Damage Amount Requested: $212,000.00
- Settlement Amount: $150,000.00
- Arbitration Docket Number:
DISCLOSURE 9 –
- Event Date: 10/8/2019
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2019063681501
- DocketNumberAAO: 2019063681501
- Initiated By: FINRA
- Allegations: Without admitting or denying the findings, Westenbarger consented to the sanction and to the entry of findings that he failed to provide documents requested by FINRA during the course of an investigation after it learned of the conduct disclosed in a Form U5 submitted by his member firm. The findings stated that Westenbarger intentionally provided a partial response, but did not substantially comply with all aspects of FINRA’s request. The form U5 submitted by the firm disclosed that his termination was for a violation of firm policies and procedures regarding borrowing funds from clients.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Bar (Permanent)
- Sanction Details :: Registration Capacities Affected: All capacities
- Duration: Indefinite
- Start Date: 10/8/2019
DISCLOSURE 10 –
- Event Date: 9/19/2019
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: Clients allege the annuity was an unsuitable investment.
- Damage Amount Requested: $12,307.00
- Settlement Amount: $12,307.02
- Arbitration Docket Number:
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Previous Associations
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- SECURITIES AMERICA, INC. (CRD#: 10205) :: 5/2/2016 – 9/12/2019 :: Grand Rapids, MI
- FIRST ALLIED SECURITIES, INC. (CRD#: 32444) :: 3/14/2014 – 5/4/2016 :: GRAND RAPIDS, MI
- AMERICAN PORTFOLIOS FINANCIAL SERVICES, INC. (CRD#: 18487) :: 4/21/2011 – 3/14/2014 :: GRAND RAPIDS, MI
- INVEST FINANCIAL CORPORATION (CRD#: 12984) :: 3/1/2007 – 4/25/2011 :: GRAND RAPIDS, MI
- SIGMA FINANCIAL CORPORATION (CRD#: 14303) :: 10/16/2006 – 2/28/2007 :: GRAND RAPIDS, MI
- ONEAMERICA SECURITIES, INC. (CRD#: 4173) :: 3/20/2003 – 11/10/2006 :: GRAND RAPIDS, MI
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Jaime Michael Westenbarger, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Sometimes investment losses occur because advisors, stockbrokers, and even brokerage firms, commit fraud. Massimo Vignelli
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Jaime Westenbarger
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Jaime Michael Westenbarger – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (4625703) for the broker – Jaime Michael Westenbarger
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.