Broker-Dealer CEO the Focus of $3 Million FINRA Arbitration Complaint
An $3 million arbitration complaint was filed with FINRA against Jackie Wadsworth, the owner and CEO of Houston-based broker-dealer, IMS Securities Inc., relating to the sale of variable annuities and real estate securities.
The allegations against Wadsworth include negligence, over-concentration, breach of fiduciary duty, misrepresentations, and failure to supervise. Due to the confidential nature of the FINRA arbitrations, specific details were not disclosed about the complaint on Wadsworth’s BrokerCheck report.
IMS Securities sells a range of securities products, including non-traded real estate investment trusts and direct participation plans. According to a filing with the Securities and Exchange Commission, the broker-dealer’s 2015 year-end revenues totaled $11.5 million, of which $9.8 million was from commission income.
In 2013, IMS Securities settled a FINRA case and agreed to a $100,000 fine for allegedly failing to establish and maintain an adequate system to supervise its wholesale representatives from May 2006 through March 2010. In addition, FINRA says that IMS did not have sufficient written supervisory procedures in place for three years in order to assess the non-traded REITs and direct participation plans it sold. The financial firm did not admit to or deny FINRA’s findings.
IMS Securities was founded in 1994 and has approximately 110 registered representatives in 16 states.
