As a financial analyst and writer, I’m here to discuss a matter that serves as a cautionary tale for investors and industry professionals alike. Stock broker James Bernthal has been associated with Aegis Capital Corp in New York since 2020, having spent time with Dawson James Securities Inc prior to that, from 2016 to 2020. Today, Bernthal finds himself in hot water with allegations of violating key conduct rules as set by the Financial Industry Regulatory Authority (FINRA). You can look up his history, including Bernthal’s CRD: 4871243, here. These issues are grave and have significant ramifications for all parties involved. If these allegations are substantiated, they could mean severe financial harm to the investors who placed their trust in him, perhaps leading to irreversible damage to their financial wellbeing.
A Client’s Serious Accusations Against James Bernthal at Aegis Capital Corp
On March 17, 2023, a client leveled claims against Bernthal via FINRA Arbitration No. 23-00633. They charged him with unauthorized trading and misleading statements. These are heavy accusations, and if found to be true, could mean Bernthal and his firm may have to provide a remedy of nearly $772,000 in damages.
When History Repeats: Unsuitability Allegations and a Settlement with Dawson James
Unfortunately for Bernthal, this is not his first dance with such disputes. Previously at Dawson James Securities Inc, he faced claims of making inappropriate investment recommendations and neglecting to fulfill an order. This dispute—FINRA Arbitration No. 17-01707—forced Dawson James Securities Inc to settle by paying out $295,000 in May 2018.
Continued Pattern of Claims and Financial Repercussions
Despite his tarnished record, Bernthal managed to secure a position at Obsidian Financial Group, only to be accused there as well. One client alleged unsuitable trading strategies and excessive transactions, leading to Arbitration No. 17-00141. Obsidian settled for $11,750 in February 2019.
To turn back the clock, in 2014 a client charged Bernthal with misrepresentation and unsuitability related to certain stocks in Arbitration No. 13-00366. This resulted in a $50,000 settlement in October of that year.
And yet, Obsidian had to fork over another $30,000 in 2016 because of unsuitable trades and excessive transactions conducted by Bernthal between 2010 and 2012.
Bernthal’s pattern of professional mishaps invokes serious concern about his decision-making and the negative consequences for his clients—financially and emotionally. Such stories highlight the essential role of due diligence for investors when choosing a broker.
Support for Investors and an Important Lesson
Here’s something investors need to know: if you’ve suffered financially due to the malpractice of a broker, you’re not isolated in this struggle. There are paths to seek justice. Despite the severity of the allegations against him, Bernthal, as well as his employers, refute any wrongdoing. Yet, as the legendary Warren Buffett once said, “It takes 20 years to build a reputation and five minutes to ruin it.” This scenario is a stark reminder that only through a thorough legal process can we unravel the truth and potentially restore the tarnished reputations of those involved.
James Bernthal’s situation is a powerful exemplar of the pitfalls within the financial advising world. Here’s an unsettling fact: As reported by the Securities and Exchange Commission, “bad” financial advisors could cost investors billions annually due to unlawful or unethical actions. This reality stresses the importance of transparency and integrity within the financial advisory sphere.
Should you find yourself needing guidance on financial investment matters or if you suspest that your investment advisor has not lived up to their responsibilities, remember that there are regulatory bodies and legal channels through which you can seek reparation. Always remember to verify a financial advisor’s background, which is readily accessible via their FINRA CRD number. Stay informed, stay cautious, and keep your investments safe.
