Former star LPL Financial adviser James “Jeb” Bashaw has finally found a home.
After LPL Financial terminated Mr. Bashaw near the end of September for allegedly "
selling away,” he was temporarily registered in October with Wunderlich Securities Inc., which eventually
declined to sign him up.
According to his BrokerCheck profile, Mr. Bashaw is now registered with a small broker-dealer, International Assets Advisory, which had revenues of just $19 million in 2013, according to its annual audited financial statement with the Securities and Exchange Commission.
In comparison, Mr. Bashaw's former firm, LPL, said on Thursday it had close to $1.1 billion in revenue for the three months ended in September.
When a reporter called the Bashaw Group, his old firm, Mason Bashaw, his daughter, answered on his behalf but did not comment when asked about Mr. Bashaw's registration with International Assets Advisory. She and other members of Mr. Bashaw's team who left LPL have joined Wunderlich Securities.
Mr. Bashaw did not respond to an email requesting comment about his move.
Barron's magazine ranked Mr. Bashaw in 2011 as the
top financial adviser in Texas with $3.8 billion in assets. LPL last month
terminated him due to allegations that he had participated in private securities transactions without providing the firm written disclosures or obtaining its written approval, according to his BrokerCheck report. He also allegedly borrowed money from a client.
Engaging in securities transactions without broker-dealer approval or knowledge is commonly known as “selling away” in the securities industry and is one of the most common and also serious allegations against registered reps.
On his BrokerCheck report, Mr. Bashaw stated: “I am home office supervised and have had 13 perfect audits. I am still unclear as to the specifics.”
This article has been updated to indicate that Mr. Bashaw had $3.8 billion in assets, not production.
