Securities Arbitration Lawyer Blog
FINRA has suspended James Alan Schumaker from the securities industry for nine months for allowing a former registered representative, who had been barred from the securities industry in 2014, to conduct a securities business. The barred registered representative was identified as Mr. Schumaker’s father. In addition to his suspension, Mr. Schumaker was also fined $5,000.
If you have lost money with James Alan Schumaker, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
Key Points
Mr. Schumaker and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on February 18, 2021, over the following findings:
- From September 2018 through February 2019, Mr. Schumaker permitted and enabled a former registered representative who had been barred and statutorily disqualified from the securities industry by FINRA to conduct a securities business. In doing so, Mr. Schumaker violated FINRA Rule 2010.
- The Rule requires that members and associated persons observe high standards of commercial honor and just and equitable principles of trade.
FINRA AWC
Mr. Schumaker’s father had been a FINRA registered broker. He was barred and statutorily disqualified from the securities industry by FINRA in 2014 after he failed to respond to an inquiry into allegations that he converted funds.
Mr. Schumaker’s father did not inform all his customers that he had been barred or that he could no longer provide brokerage services. Starting in September 2018, Mr. Schumaker became the broker of record for his father’s former customers. At the time, Mr. Schumaker was registered as a general securities representative with Cambridge Investment Research, Inc.
Mr. Schumaker conducted his Cambridge brokerage business through Schumaker Financial LLC. Mr. Schumaker’s father was the CEO, President, and sole owner of Schumaker Financial.
Between September 2018 and February 2019, Mr. Schumaker knew and allowed his father to email customers about their brokerage account statements, attend in-person customer meetings to discuss brokerage account strategy, maintain an office within Mr. Schumaker’s Cambridge branch location in Lafayette, Indiana, and share a phone line with the branch location.
Cambridge conducted two branch office audits – in November 2018 and February 2019 – and found Mr. Schumaker’s father on the premises on both occasions. After the first audit, Cambridge warned Mr. Schumaker that his father could not be on the premises, use a conference room on the premises, or provide him with any investment advice relating to brokerage accounts. Mr. Schumaker confirmed that he understood.
When Cambridge performed a second audit, it found Mr. Schumaker’s father on the premises in a meeting with Mr. Schumaker and a brokerage customer in the conference room.
James Alan Schumaker (CRD#: 6829407)
According to the FINRA AWC, James Alan Schumaker entered the securities industry in July 2017. He has been registered with the following firms:
- Cambridge Investment Research, Inc., Lafayette, IN (September 24, 2018 – March 7, 2019); and
- OneAmerica Securities, Inc., Lafayette, IN (April 16, 2018 – July 19, 2018).
Cambridge disclosed through a Form U5 dated March 7, 2019, that Mr. Schumaker had been terminated due to a “loss of confidence in the registered representative.”
Mr. Schumaker is no longer associated with any FINRA member but remains subject to FINRA’s jurisdiction.
How to Recover Losses or Obtain a Free Consultation
If you have lost money with James Alan Schumaker, contact New York securities arbitration lawyer Jorge Altamirano of Iorio Altamirano LLP at jorge@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.