James McArthur Charged by SEC: Par Funding Allegations

James McArthur (CRD# 2797856[1]), an investment adviser registered with A.G. Morgan Financial Advisors, participated in an fraudulent unregistered securities offering, according to a regulatory complaint. MDF Law is investigating the Massapequa, New York-based financial professional for similar conduct. If you suffered losses in your accounts, contact our attorneys for a free consultation.

To learn more about the allegations against Mr. McArthur, continue reading this post. The information below is based on an October 2, 2024 review of his Financial Industry Regulatory Authority (FINRA) BrokerCheck profile and his Securities and Exchange Commission (SEC) Investment Adviser Public Disclosure form. 

SEC Alleges Par Funding Fraud

On June 9, 2022, the Securities and Exchange Commission filed a complaint[2] alleging that Mr. McArthur violated securities laws. The SEC’s complaint alleges that as the Chief Compliance Officer of A.G. Morgan Securities, he and the firm’s principal participated in “an unregistered securities offering that raised more than $75 million from more than 200 investors.” The alleged offering involved the sale of promissory notes associated with the lending company Complete Business Solutions Group, doing business as Par Funding. 

According to the SEC’s allegations, both the firm and the principal breached their fiduciary duty to investors when they failed to disclose a conflict of interest. The alleged conflict of interest was that Mr. Camarda, the principal, “on behalf of AGM, began borrowing money from Par Funding[3] through so-called ‘merchant cash advance’ transactions,” and owed the company $750,000. He and Mr. McArthur allegedly “solicited nearly one dozen investors to invest at least $2.6 million in promissory notes issued by Par Funding” between August and November 2017.

Though the principal represented to investors that the investment was safe, according to the SEC, he did not disclose A.G. Morgan’s debt to Par Funding. He and Mr. McArthur “collectively received more than $7 million in compensation from Par Funding for their sales of the unregistered securities,” according to the SEC, which alleges violations of the Securities Act and the Exchange Act. The SEC’s case is still ongoing.

McArthur Resigned from IBN Financial Services

On June 17, 2022, IBN Financial Services permitted Mr. McArthur to resign from the firm. According to a disclosure on his BrokerCheck profile, his resignation followed allegations that he unlawfully sold securities as part of an unregistered fraudulent offering.

Pending Disputes Seek Millions in Damages

Twelve parties of investors filed disputes involving Mr. McArthur in 2024. These disputes include allegations of negligence, omission of material facts, the sale of unregistered securities, and violations of FINRA rules. The disputes, which are still pending, seek more than $9 million in damages.

FINRA: James McArthur Based in Massapequa, New York

James McArthur launched his career as a broker in 1996, when he registered with Pruco Securities in Newark, New Jersey. Over the course of his career, he’s worked at a variety of firms, including AXA Distributors, LPL Financial, and IBN Financial Services. He joined his current investment adviser firm, A.G. Morgan Financial Advisors, in 2021. He has remained at the firm since, working at its office in Massapequa, New York. With 25 years of experience as an investment adviser, he has completed six industry exams 

MDF Law Advocates for Investors

If you suffered losses on investments recommended by James McArthur, you may have grounds to to pursue a recovery through the FINRA arbitration process. Contact MDF Law to discuss your case with our team. We take cases on a contingency basis: clients only pay a fee if they collect a recovery. Call 800-767-8040 today for a free, confidential consultation today.