Etter Sold Private Investments

James C. Etter violated industry standards by engaging in undisclosed private securities transactions and an unapproved outside business activity. Specifically, he raised $110,000 through private transactions without notifying his firm and received approximately $66,000 for business development services—actions that breached FINRA Rules 3280, 3270, and the broader principles of FINRA Rule 2010.

Etter began his career with FINRA in October 2008 and served as a General Securities Representative with NatAlliance Securities, LLC from January 2012 until his resignation in April 2023. His tenure at NatAlliance was marked by his participation in activities that ultimately led to internal review and his subsequent departure from the firm, leaving him unaffiliated with any current FINRA member.

In simple terms, FINRA Rule 3280 is designed to ensure that any private securities transaction is fully disclosed to the representative’s firm before it happens. Likewise, FINRA Rule 3270 requires that any outside business activities be reported and approved in advance to avoid conflicts of interest. Both rules aim to maintain transparency and trust in the financial industry.

By failing to inform NatAlliance Securities about his private transactions and external business dealings, Etter not only broke the explicit requirements of these FINRA rules but also undermined the integrity and trust essential to the broker-client relationship. His actions deviated from the high standards expected of financial professionals and compromised the transparency needed to protect investors.

Lufrano Law, LLC is a national investment litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. Please contact us at (800) 627-2179 for more information if you have been the victim of investment negligence or fraud.