John David Ballance Audit (2023) – A Scam or Legit Broker?

John David Ballance  – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).

If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.

Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with John David Ballance.

BrokerComplaints.com is currently investigating allegations related to John David Ballance. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.

About John Ballance

John David Ballance is an Investment Adviser. John David Ballance’s Central Registration Depository (CRD) number is 1301418 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/1301418.

Click here to download a Detailed Audit Report for John David Ballance.

John David Ballance has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.

Accusations and Disclosures

You can find below, a quick snapshot of John David Ballance’s regulatory actions, arbitrations, and complaints.

DISCLOSURE 1 – 

• Event Date: 3/16/2006
• Disclosure Type: Customer Dispute
• Disclosure Resolution: Denied
• Disclosure Detail :: Allegations: CLIENTS ALLEGES THEY WERE INFORMED THEY WOULD ONLY OWE TAXES ON THE GAINS IN AN ANNUITY THAT WAS SURRENDERED. CLIENT CLAIMS, AFTER RECEIVING THE 1099R FROM HARTFORD, THEY CONTACTED THE IR TO CONFIRM THE INFORMATION REGARDING THE TAXES. CLIENT STATES, AT THAT TIME, THEY WERE ADVISED THEY WOULD OWE TAXES ON THE FULL AMOUNT LIQUIDATED. CLIENT CLAIMS THEY CANNOT AFFORD $9,000.00 IN TAXES AND, AS A RESULT OF THE ADDITIONAL INCOME, THEIR SOCIAL SECURITY BECAME TAXABLE. CLIENT BELIEVES THEY WERE MISINFORMED AND SHOULD HAVE SOME RECOURSE WITH REGARD TO THIS SITUATION. FILING REQUIRED.
• Damage Amount Requested: $5,000.00
• Broker Comment: OUR RECORDS REFLECT, AT THE TIME OF THE MAY 2005 DISTRIBUTION, THE CLIENT COMPLETED AND SIGNED AN ANNUITY FULL LIQUIDATION LETTER IN WHICH SHE ELECTED TO HAVE NO TAXES WITHHELD FROM THE WITHDRAWAL. THE IR HAS INDICATED WITHDRAWALS HAVE BEEN PREVIOUSLY MADE FROM THE ACCOUNT FOR WHICH THE CLIENT WOULD HAVE RECEIVED 1099R’S. IN ADDITION, HE HAS STATED THE CLIENT WAS ADVISED OF THE POTENTIAL FOR TAX CONSEQUENCES AND IT WAS ALSO SUGGESTED THAT THE CLIENT CONSULT WITH A QUALIFIED TAX PROFESSIONAL WITH SPECIFIC QUESTIONS RELATED TO THE WITHDRAWAL. THE IR BELIEVES THE CLIENT CONTACTED HIM WHEN PREPARING HER TAXES AND, IT WAS AT THAT TIME, HE STATED HE WOULD REVIEW HIS RECORDS AND CONTACT HARTFORD TO DETERMINE IF THE FULL AMOUNT OF THE WITHDRAWAL WAS TAXABLE. BASED ON OUR REVIEW, IT APPEARS ADEQUATE DISCLOSURE WAS MADE RELATED TO THE POTENTIAL TAX CONSEQUENCES OF THE DISTRIBUTION; THEREFORE, WE ARE RESPECTFULLY DENYING THE CLIENT’S REQUEST FOR A REIMBURSEMENT OF THE TAXES INCURRED AS A RESULT OF THE LIQUIDATION OF THE ANNUITY. CLAIM DENIED.

According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.

FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.

Previous Associations

Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.

• EDWARD JONES (CRD#: 250) :: 5/5/1989 – 3/9/2015 :: QUINCY, IL
• PRIVATE LEDGER FINANCIAL SERVICES, INCORPORATED (CRD#: 6413) :: 10/11/1988 – 5/8/1989 :: FORT MILL, SC
• KIMMINS SECURITIES, INC. (CRD#: 18168) :: 8/18/1988 – 10/18/1988
• LOWELL H. LISTROM & COMPANY INC. (CRD#: 6336) :: 10/26/1984 – 9/13/1988

The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.

Legit or Not?

Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including John David Ballance, but not limited to)  can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.

Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.

There are 10 major types of complaints we receive against Investment Brokers –

• Outright Theft (Conversion of Funds)
• Unauthorized Trading
• Misrepresentation or Omission of Material Facts
• Excessive Trading (Churning)
• Lack of Diversification
• Unsuitable Investment Recommendations
• Failure to Disclose a Personal Conflict of Interest
• Front Running of Transactions
• Breakpoint Sale Violations
• Negligent Portfolio Management

Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet. 

How to Protect Yourself

We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.

Here are 5 signs that your broker needs to be reported –

• Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
• Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
• Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
• Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
• Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
• Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.

Report John Ballance

In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.

John David Ballance – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.

Click here to go to FINRA’s Online Complaint Form →

This form will ask you for specific information related to your complaint. Be prepared by gathering the following:

• Name and symbol for the investment product in question.
• The CRD number (1301418) for the broker – John David Ballance
• Your complete contact information.

Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint.  Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.

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