Skip to main content

Exit WCAG Theme

Switch to Non-ADA Website

Accessibility Options

Select Text Sizes

Select Text Color

Website Accessibility Information Close Options
Close Menu
Carlson Law, P.A. Motto
  • Free Consultation
  • ~

James Clay: FINRA Bars Former CUSO, US Bancorp Advisor

A disciplinary action taken by the Financial Industry Regulatory Authority against former Clarksville, Tennessee broker and investment advisor James Clay (CRD# 5748560) barred him over allegations he engaged in outside business activities. A former representative of CUSO Financial Services and US Bancorp Investments, Clay was barred from acting as a broker or otherwise associating with a broker-dealer firm.

According to a FINRA decision (No. 2014039775501) that became final in November 2018, James Clay was named in a FINRA complaint alleging participated in an unapproved, undisclosed outside business activity comprising “the acquisition and management of 49 rental properties located in Clarksville, Tennessee.” According to the complaint, this venture grew out of his relationship with an 86-year-old man (at the time) who was a customer of his member firm, US Bancorp Investments. FINRA states that Clay and the customer made an agreement in which the customer “would sell Clay the rental properties for $1 million, finance Clay’s purchase, and make an additional $500,000 loan to Clay for repairs and upgrades.”

FINRA’s complaint goes on to state that Clay created a company, Clay Enterprises, in connection with this outside business, and “collected and deposited” almost $6,000 in rent from the properties’ tenants into his personal bank account. He also allegedly liquidated almost $500,000 in securities in the customer’s investment advisory account to finance the $500,000 loan for repairs and upgrades. FINRA states that Clay’s receipt of this loan was eventually prevented by the customer’s son, who also complained to US Bancorp about Clay’s rental property acquisition. According to FINRA, “Clay repeatedly lied to a firm supervisor” during an internal investigation of the customer’s son’s complaint, asserting in part that he had no involvement in an outside business activity, and instead was “merely facilitating his sister’s purchase of the rental properties.” He also allegedly made these same statements again in on-the-record interviews with FINRA and in written responses to the regulator. As a result of the alleged foregoing conduct, Clay was indefinitely barred from acting as a broker or otherwise associating with a broker-dealer firm. The bar started on November 1, 2018.

James Clay is not currently registered as a broker or investment advisor. His employment history includes CUSO Financial Services, US Bancorp Investments, and Edward Jones, all in Clarksville, Tennessee. He currently holds no state licenses and has passed three securities industry qualification examinations.

Facebook Twitter LinkedIn

By submitting this form I acknowledge that form submissions via this website do not create an attorney-client relationship, and any information I send is not protected by attorney-client privilege.

Latest Blog Posts

Brian Marston: $1.7MM Real Estate Complaint Against Woodbury Rep

Greenwood Village, Colorado stockbroker and investment adviser Brian Marston (CRD# 733083) is involved in pending investor disputes. According to the Financial Industry Regulatory Authority, Marston is currently a representative of...

Read More

$3MM Complaint Against Elm Grove Rep Timothy Bartelt

Raymond James stockbroker Timothy Bartelt (CRD# 2501532) is the subject of an investor complaint alleging $3 million in damages. According to the Financial Industry Regulatory Authority, Bartelt is based in...

Read More

Michael Shillin: SEC Files SpaceX Charges Against Ex-AGP Rep

Former Altoona stockbroker and investment adviser Michael Shillin (CRD# 5927156) has been named in charges by the Securities and Exchange Commission alleging he deceived his investors. According to the Financial...

Read More

By submitting this form I acknowledge that form submissions via this website do not create an attorney-client relationship, and any information I send is not protected by attorney-client privilege.

Skip footer and go back to main navigation