Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, James Eugene Holmes, III (CRD # 2174697) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into Regulation Best Interest violation (Reg BI) and unauthorized discretion.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Holmes, III.
Registration Background for James Eugene Holmes, III
Mr. Holmes, III first became registered in the securities industry in 1991. He was most recently registered with Winston Salem, NC based Wells Fargo Clearing Services, LLC (CRD # 19616) from August 2019 to October 2024. He was previously registered with Stephens (CRD # 3496) from March 2011 to September 2019 and Deutsche Bank Securities Inc. (CRD # 2525) from January 2001 to April 2011.
FINRA’s Allegations Against James Eugene Holmes, III
According to the FINRA Letter of Acceptance, Waiver and Consent (AWC) dated November 24, 2025 (No. 2022075386201), Mr. Holmes, III consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between October and December 2021, [Mr.] Holmes recommended options transactions to a customer without having a reasonable basis to conclude that the transactions would be in the customer’s best interest or suitable based on her investment profile”;
- “In August 2020, [Mr.] Holmes submitted account information for the same customer to his employer firm that inaccurately stated her financial circumstances, investment experience, and investment objectives”;
- “[B]etween January 2023 and September 2024, Holmes exercised discretion without prior written authorization in at least five customers’ accounts to effect at least 250 trades”; and
- By virtue of his actions, Mr. Holmes, III violated Reg BI, regarding acting in the best interest of the customer, FINRA Rule 4511 regarding record keeping, and FINRA 2630(b)(19) regarding the conduct of member firms engaged in options trading, FINRA Rule 2010 regarding standards of commercial honor and principles of trade, and FINRA Rule 3260(b) regarding discretionary accounts.
FINRA Suspends James Eugene Holmes, III from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s November 24, 2025 AWC also indicates that Mr. Holmes, III consented to the following sanction(s):
- an eight-month suspension from association with any FINRA member in all capacities; and
- a fine in the amount of $10,000.00.
James Eugene Holmes, III Has A Prior History of Securities Industry Customer Complaints
In addition to Mr. Holmes, III being suspended by FINRA from the securities industry regarding various sales practice violations, FINRA BrokerCheck for Mr. Holmes, III reveals that he has a history of customer complaints and/or customer-initiated arbitrations, including but not necessarily limited to the following:
- On April 11, 2025, a customer-initiated arbitration was commenced against Mr. Holmes, III regarding alleged actions that occurred while he was associated with Wells Fargo Clearing Services, LLC. The customer alleged unsuitable investment recommendations. The customer further alleged damages in the amount of $500,000.00. Arbitrations is currently pending.
Have You Lost Money with James Eugene Holmes, III?
If you or someone you know has or had a brokerage account with Mr. James Eugene Holmes, III and have concerns regarding losses in your investments or possible sales practice violations including fraud or negligence, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.
