James "Jeb" Bashaw, the former star LPL Financial broker who has become embroiled in controversy, has found a Plan C.
Bashaw, whose firm's relationship with LPL was terminated last month, has been hired by International Assets Advisory, a small broker-dealer in Orlando, Fla. In parting ways with Bashaw, the biggest U.S. independent broker-dealer alleged he engaged in securities transactions without its approval -- a practice commonly known as "selling away."
Bashaw initially decamped to Wunderlich Securities, based in Memphis, Tenn. -- but that relationship ended after only 10 days.
International Assets was impressed by Bashaw's three-decade track record in the industry and reached out to him through mutual acquaintances, says Ed Cofrancesco, the firm's president. "We believe the things people do over 30 years speaks volumes, and mean more than rumor and innuendo," he says. "We put our faith and trust in the industry and the regulators that conduct exhaustive investigations."
CURRENTLY 'UNLICENSED'
FINRA's Broker Check page currently lists Bashaw, who has worked for nearly a dozen firms in those 30 years and managed around $3.8 million in assets while associated with LPL in Houston, as "unlicensed." The self-regulatory organization declined to comment on the case.
In a FINRA filing, LPL alleges that Bashaw was "discharged for (a) participating in private securities transactions without providing written disclose to and obtaining in written approval from the firm; (b) borrowing from a client and (c) engaging in a business transaction that created a potential conflict of interest."
"I am home office supervised and have had 13 perfect audits," Bashaw responded to FINRA. "I am still unclear as to specifics."
International Assets had over $19 million in revenue and lost slightly more than $400,000 in 2013, according to Cofrancesco.
Pecuni, Cofransesco's holding company that owns International Assets, also owns another Florida-based broker dealer, IAA Financial. Pecuni also owns an RIA in Orlando, International Asset Investment Management, which has around $127 million in assets under management, according to the firm's ADV filing.
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