A well-known Charlotte area advisor, James “Jim” Heafner, faces SEC charges he engaged in outside business activities. His member firm, Taylor Captial Management, Inc released the broker amid the allegations.
The risky outside investments were in 1st Global Captial, LLC. This south Florida company’s assets were recently frozen by the SEC.
1st Global allegedly paid commissions to both registered and unregistered brokers. In all, this resulted in more than $280 million in fraudulent investments. According to SEC filings, 1st Global’s owner pocketed more than $35 million in the scheme.
1st Global is also under scrutiny for falsifying financial information about its return on investment. Heafner claims the investment in 1st Global appeared very safe. He made the recommendation based on what he believed to be true about the company at the time.
Still, Haefner’s broker check record shows complaints from three customers about the investments. The customers say he was negligent to recommend they invest in 1st Global. Together they lost more than half a million dollars in this unsuitable investment.
Heafner claims to have recommended the investment to more than 45 of his clients. He did not comment on his total commissions. Haefner was working under Taylor Captial Managment, Inc. in Charlotte, NC when the questionable recommendations took place. He was let go in August of 2018. He is no longer currently registered as a broker.
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