Sonn Law Group is investigating claims regarding James A. Rosebrough Jr. (CRD #4355308, Gilbert, Arizona). Rosebrough recently submitted an AWC in which he was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in any capacity for 30 days. See FINRA Case #2013038263201. Rosebrough was associated with Securities America, Inc., from September 2013 until his termination in February 2015. The Form U-5 filed by Securities America to terminate Rosebrough’s registration states that he permitted to resign for “failure to disclose that there was a FINRA sanction being developed that rep was aware of. During his employment with his last firm he failed to disclose OBA’s.”
Prior to Securities America, Rosebrough was associated with LPL Financial, LLC, (January 2013-September 2013 and January 2009-December 2012). The Form U-5 filed by LPL Financial in February 2015 to terminate Rosebrough’s registration states that he was discharged for “violation of firm policy regarding outside business activities.”
FINRA found that Rosebrough engaged in outside business activities without providing prior written notice to LPL Financial. In particular, Rosebrough formed a limited liability company with a colleague to purchase an office condominium and formed another limited liability company with a firm customer to acquire and rent a single-family residence. Rosebrough did not provide prior written notice to the firm prior to engaging in either of these outside business activities and did not notify his firm that he was engaging in these outside business activities until a later date. Additionally, Rosebrough inaccurately completed a firm questionnaire in which he denied having engaged in any outside business activity. In entering into the AWC, Rosebrough neither admitted nor denied FINRA’s findings.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Securities America or LPL Financial may be liable for investment or other losses suffered by Rosebrough’s customers.
If you were a client of Securities America, LPL Financial, or Rosebrough, and have suffered investment losses or financial irregularities, please contact Sonn Law Group to explore your legal options. Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 844-689-5754 or complete our “contact form.”