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Massapequa Advisor James McArthur Named in SEC Complaint: Par Funding
The Securities and Exchange Commission has brought a complaint against Massapequa Financial Advisor James McArthur (CRD# 2797856). According to Financial Industry Regulatory Authority and SEC records, the complaint alleges that the A.G. Morgan Financial Advisors representative solicited investors to invest more than $2 million in notes issued by Par Funding, an allegedly unregistered securities offering.
Mr. McArthur’s BrokerCheck report describes the SEC complaint filed against him in June 2022. According to the complaint, his violations of federal securities laws began in August 2017. As Chief Compliance Officer of A.G. Morgan Financial Advisors, the SEC alleges, he “solicited investors and offered or sold promissory notes to investors in connection with a more than $500 million unregistered fraudulent offering with lending company Complete Business Solutions Group,” also known as Par Funding. He allegedly participated in these violations with the firm’s principal, Vincent J. Camarda, who allegedly violated his fiduciary duty by failing to inform investors of his and the firm’s conflict of interest in AGM: as the SEC describes, that conflict of interest was that Mr. Camarda, “on behalf of AGM,” started taking loans from Par Funding in December 2017.
By July 2017, per the SEC, the firm owed par funding roughly $750,000. In August of that year, Mr. Camarda and Mr. McArthur allegedly started soliciting investors to purchase Par Funding promissory notes as part of the firm’s unregistered securities offering, ultimately soliciting “nearly one dozen investors to invest at least $2.6 million in promissory notes” by November 2017. The SEC alleges that Mr. Camarda “told at least two investors that it was a safe investment, while failing to disclose that his company AGM was in debt to Par Funding and that Camarda was a guarantor on that debt to Par Funding.” As part of their sales of the Par Funding notes, the SEC alleges, the representatives “collectively received more than $7 million in compensation” from the company. The SEC alleges that Mr. McArthur violated federal securities law in its complaint, which is still pending.
Mr. McArthur resigned from his position as a broker at IBN Financial Services in Massapequa, New York in June 2022, according to a disclosure on his BrokerCheck report. The disclosure states that he was “permitted to resign” in relation to allegations he participated in the unlawful offering and sale of securities in Par Funding.
According to the Financial Industry Regulatory Authority and the SEC, James McArthur holds 23 years of securities industry experience. Based in Massapequa, New York, he has been an investment advisor with A.G. Morgan Financial Services since 2021. He is not registered as a broker. His past registrations include IBN Financial Services; Traderfield Securities; American Portfolios Financial Services; LPL Financial; Park Avenue Securities; and MML Investors Services. His credentials include the passage of six securities industry qualifying exams: the Investment Company Products/Variable Contracts Principal Examination, or Series 26; the Uniform Investment Adviser Law Examination, or Series 65; the Investment Company Products/Variable Contracts Representative Examination, or Series 6; the Uniform Securities Agent State Law Examination, or Series 63; the General Securities Representative Examination, or Series 7; and the Securities Industry Essentials Examination, or SIE. He is licensed as an investment advisor in Connecticut and New York. (Information current as of June 28, 2022.)
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