Securities Arbitration Lawyers BlogJames Flynn, Former South Carolina-based IFS Securities and Voya Financial Advisors Broker, Under Investigation
Silver Law Group is investigating former Greenville, South Carolina-based broker James T. Flynn (CRD# 3082615) after FINRA permanently barred the broker.
FINRA Bars James T. Flynn After Numerous Customers File FINRA Arbitrations
According to Flynn’s FINRA BrokerCheck report, FINRA permanently barred Flynn in June 2018 after he failed to respond to a FINRA inquiry. The FINRA bar follows approximately 17 disclosures on Flynn’s FINRA BrokerCheck report and two employment terminations within one year.
According to Flynn’s FINRA BrokerCheck report, Flynn was based out of the Greenville, South Carolina branches of IFS Securities and Voya Financial Advisors. Flynn has a total of 22 disclosures on his FINRA BrokerCheck report, including his banishment from the securities industry.
Flynn’s disclosures begin in 2005 when two tax liens were levied against him in the amount of approximately $275,000. In April 2013, Flynn declared bankruptcy.
Since June 2015, 8 FINRA arbitrations have settled against Flynn in the aggregate of over half a million dollars. Further, both Voya Financial Advisors and IFS Securities terminated Flynn’s employment. According to Flynn’s BrokerCheck report, Voya Financial Advisors terminated him for providing misleading information to the firm during a customer complaint investigation. IFS Securities terminated Flynn after a client complained about unauthorized trading.
Flynn was associated with Voya Financial Advisors from May 2013 up until his firing in February 2017. Flynn then worked for IFS Securities for a brief period of time until he was fired in February 2018. Flynn also was licensed to sell insurance and operated under various monikers, including Flynn Wealth management Group and Flynn Insurance Group LLC. Flynn was based out of Greenville, South Carolina.
Upon information and belief, Flynn primarily sold his customers non-traded REITs and other illiquid investments offered by issuers such as Phillips Edison and Business Development of America.
What is a Non-traded REIT?
A non-traded REIT invests in real estate like a publicly-traded REIT and is subject to the same IRS and SEC disclosure requirements, but there are some key differences:
- Non-traded REITs do not list on a national securities exchange;
- Non-traded REITs have limited resale value and are relatively illiquid;
- Non-traded REITs have significant front-end fees that can be as much as 15% of the price per share; and
- Distributions may come from the principal paid for the non-traded REIT.
Both FINRA and the SEC have issued investor bulletins and guidance concerning investing in non-traded REITs. Due to non-traded REITs’ lack of liquidity, when the non-traded REIT ceases to pay dividends, it can leave the REIT relatively valueless. Regardless, each broker and brokerage firm is required to ensure that the non-traded REIT is suitable prior to selling the investment to a customer.
Contact Our Firm if You’ve Invested with James T. Flynn and IFS Securities and/or Voya Financial Advisors
If you have invested with James T. Flynn and IFS Securities and/or Voya Financial Advisors, you may have a claim to recover some or all of your investment. Contact our firm today to see how we can try to recover your losses. If we don’t recover money for you, you owe us nothing.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. Scott Silver is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide in securities investment fraud cases. Please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.