Jim Holmes: FINRA Suspends Fired Wells Fargo Advisor

Winston Salem, North Carolina financial advisor Jim Holmes (CRD# 2174697) was recently sanctioned and suspended in connection with alleged rule violations. Financial Industry Regulatory Authority and Securities and Exchange Commission records show that the former Wells Fargo broker is currently registered as an investment advisor with THREE Magnolias Financial Advisors.

A Letter of Acceptance, Waiver, and Consent (No. 2022075386201) describes FINRA’s disciplinary action against Mr. Holmes. Filed in November 2025, it describes allegations that he “recommended options transactions to a customer without having a reasonable basis to conclude that the transactions would be in the customer’s best interest or suitable based on her investment profile.” It goes on to explain that the customer told Mr. Holmes that she was looking for income-generating investments that would help finance the purchase of a new home in the following year or two. She also allegedly told him that she could not afford any principal loss and did not wish to be exposed to significant risk.

In spite of this, as well as her inexperience as an investor, Mr. Homes allegedly “recommended uncovered (or naked) put options transactions that created significant risk exposure in the customer’s account, including in volatile securities.” According to FINRA, such strategies have substantial risks and limited potential profits. The transactions resulted in losses in the customer’s account, according to FINRA, which states that Mr. Homes “did not have a reasonable basis to believe that these transactions were suitable for the customer and in her best interest.” Finding that he violated industry rules, such as Regulation Best Interest, FINRA suspended him from associating with any member firm for a period of eight months. It also ordered him to pay a fine of $10,000.

Mr. Holmes’ BrokerCheck report one investor complaint. Filed in April 2025, it alleges that he recommended unsuitable investments and an unsuitable investment strategy. The pending complaint alleges damages of $500,000

A second disclosure on his BrokerCheck report concerns his termination from Wells Fargo. Filed in September 2024, it states that the firm fired him in connection with allegations that he made discretionary trades in several client accounts.

According to the Financial Industry Regulatory Authority and the Securities and Exchange Commission, Jim Holmes holds 34 years of securities industry experience. Based in Winston Salem, North Carolina, he has been registered as an investment advisor with THREE Magnolias Financial Advisors since October 2024. His past registrations include Wells Fargo, Stephens, Deutsche Bank, DB Alex Brown, and Alex Brown & Sons. He is licensed as an investment advisor in North Carolina and is not currently licensed as a broker. (Information current as of November 25, 2025.)

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