Winston Salem, NC – December 6, 2025 – James Eugene Holmes III (CRD# 2174697) is a former registered broker who was most recently employed with Wells Fargo Clearing Services, LLC in Winston Salem, NC. According to his FINRA BrokerCheck record, Holmes has a final regulatory action alleging violations of Regulation Best Interest, unauthorized discretionary trading, and inaccurate books and records, a pending customer complaint, and a termination for using trading discretion in multiple client accounts. This article provides an overview of the disclosed matters and information about investor rights under securities laws.
BrokerCheck Snapshot
Name: James Eugene Holmes III
CRD #: 2174697
Firm: Not Currently Registered (formerly Wells Fargo Clearing Services, LLC)
Location: Winston Salem, NC
Years in Industry: 34
Number of Disclosures: 3 (1 Regulatory Event, 1 Customer Dispute, 1 Termination)
Regulatory Action Against James Eugene Holmes III
According to FINRA BrokerCheck records, James Eugene Holmes III has one final regulatory action:
FINRA Complaint – Final (Initiated: November 24, 2025, Case #2022075386201)
Without admitting or denying the findings, Holmes consented to sanctions in an Acceptance, Waiver & Consent (AWC) agreement. FINRA found that Holmes willfully violated Securities Exchange Act of 1934 Rule 15l-1(a)(1) (Regulation Best Interest) by recommending 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 and the potential risks of the transactions.
The findings stated that the customer told Holmes she could not afford to lose her principal in meeting her investment goals, did not have other funds to fall back on, and could not afford to be exposed to significant risk. Nonetheless, Holmes recommended uncovered (or naked) put options transactions that created significant risk exposure in the customer’s account, including in volatile securities. The transactions recommended by Holmes caused losses in the customer’s account, which were later reimbursed by his member firm.
The findings also stated that Holmes caused his firm to maintain inaccurate books and records by submitting account information for the same customer that inaccurately stated her financial circumstances, investment experience, and investment objectives.
Additionally, the findings included that Holmes exercised discretionary authority in non-discretionary accounts of at least five customers to effect at least 250 trades. Holmes did not have prior written authorization from the customers who owned these accounts to exercise discretion in the accounts, and the firm had not accepted the accounts as discretionary. Holmes falsely attested in compliance attestations submitted to the firm that he did not have accounts over which he exercised trading discretion, including time and price discretion, other than those approved by the firm as discretionary.
Sanctions Imposed:
- Fine: $10,000.00 (deferred payment plan)
- Suspension: Eight months in all capacities (December 1, 2025 through July 31, 2026)
- The settlement includes a finding that Holmes willfully violated Rule 15l-1(a)(1) of the Securities Exchange Act of 1934, making him subject to a statutory disqualification with respect to association with a member under Article III, Section 4 of FINRA’s By-Laws.
The matter is final as of November 24, 2025.
Customer Complaint Against James Eugene Holmes III
Complaint Filed: April 11, 2025 (FINRA Case #25-00745)
A customer filed a pending arbitration claim alleging that during an unspecified time period, Holmes made unsuitable recommendations and employed an unsuitable overall investment strategy. The customer seeks $500,000.00 in damages. The matter is currently pending.
Termination from Wells Fargo Clearing Services
Termination Date: September 17, 2024
Wells Fargo Clearing Services, LLC discharged Holmes for using trading discretion in multiple client accounts. The termination involved equity securities (OTC and listed), money market funds, and mutual funds. This termination occurred prior to the FINRA regulatory action being finalized.
Pattern of Complaints and Risk Factors
While each case is unique, the regulatory findings and customer complaint against Holmes raise concerns related to unsuitable investment recommendations, particularly involving high-risk options strategies, unauthorized discretionary trading, and inaccurate account documentation. Investors who experienced similar issues should carefully review their account statements and trading confirmations and seek legal guidance.
Can Investors Recover Losses?
Investors who experienced unsuitable recommendations, unauthorized discretionary trading, or losses from inappropriate options strategies may be entitled to recover losses through FINRA arbitration.
Patil Law, P.C. has over 15 years of experience representing investors in FINRA arbitration and securities litigation, with more than $25 million recovered for clients across 1,000+ cases. We provide a free, confidential consultation to review your potential claim. Our firm works on a contingency fee basis, meaning you pay no attorney fees unless we successfully recover money for you.
About FINRA Arbitration
FINRA arbitration is a streamlined dispute resolution process for securities-related claims. It offers a faster, more cost-effective alternative to traditional court litigation. Most cases are resolved within 12-16 months. Claims generally must be filed within six years of the incident. For investors who experienced losses due to broker misconduct, FINRA arbitration provides an avenue to seek recovery without the expense and delay of federal court.
Related Brokers and Firms
Investors who have concerns about their accounts at Wells Fargo Advisors may want to review disclosure records for other registered representatives at the firm. Additionally, investors who experienced losses involving options trading or unauthorized trading should understand their rights under securities laws.
Frequently Asked Questions
What is the complaint against James Eugene Holmes III?
James Eugene Holmes III has a final FINRA regulatory action for violating Regulation Best Interest by recommending unsuitable options transactions, exercising unauthorized discretionary authority in at least five customer accounts involving 250+ trades, and causing his firm to maintain inaccurate books and records. He was fined $10,000 and suspended for eight months. He also has a pending customer complaint seeking $500,000.00 for unsuitable recommendations and was terminated by Wells Fargo for using trading discretion in multiple client accounts.
Can investors recover losses involving Wells Fargo Clearing Services?
Yes. Investors who experienced losses due to broker misconduct at Wells Fargo Clearing Services may be entitled to recover through FINRA arbitration. Most brokerage agreements contain mandatory arbitration clauses. Securities laws provide investors with remedies when brokers recommend unsuitable investments, exercise unauthorized discretion, or violate regulatory obligations.
What is FINRA arbitration?
FINRA arbitration is a forum for resolving disputes between investors and brokerage firms or registered representatives. It is typically faster and less expensive than court litigation. Most investor-broker disputes are resolved through this process due to arbitration clauses in account agreements. An arbitration panel hears evidence from both sides and issues a binding decision.
What does “unsuitable investment” mean?
An unsuitable investment is one that does not align with an investor’s risk tolerance, investment objectives, financial situation, or time horizon. Brokers have a duty to recommend only investments that are suitable for their clients based on these factors. Recommendations that expose clients to excessive risk or are inappropriate for their circumstances may constitute unsuitable investments under securities regulations.
How do I look up a broker on BrokerCheck?
You can look up any registered broker or brokerage firm on FINRA’s BrokerCheck website at brokercheck.finra.org. Simply enter the broker’s name or CRD number to access their professional background, employment history, licenses, and any customer complaints or regulatory actions. This is a free public resource that all investors should use before working with a financial professional.
What should I do if I suspect broker misconduct?
If you suspect broker misconduct, take these steps: (1) Document all account statements, trade confirmations, and communications with your broker; (2) File a complaint with FINRA and your state securities regulator; (3) Consult with a securities attorney who handles investor claims. Do not delay, as arbitration claims must generally be filed within six years. Contact Patil Law, P.C. at 800-950-6553 for a free consultation.
About Patil Law, P.C.
Patil Law, P.C. is a securities litigation firm dedicated to representing investors who have suffered losses due to broker misconduct, unsuitable recommendations, and securities fraud. Founded in 2018 by attorney Chetan Patil, the firm focuses exclusively on FINRA arbitration and investment loss recovery.
With over 15 years of combined experience in securities law, Patil Law has successfully recovered more than $25 million for clients across 1,000+ cases. Attorney Chetan Patil earned his law degree from Case Western Reserve University School of Law. Attorneys Gabriela Dubrocq and Patricia Herrera earned their law degrees from University of Miami. The firm handles cases nationwide involving unauthorized trading, churning, unsuitable investments, breach of fiduciary duty, and failure to supervise.
Patil Law works on a contingency fee basis, meaning clients pay no attorney fees unless the firm successfully recovers money on their behalf. All consultations are free and confidential.
Contact Patil Law, P.C.
If you have experienced investment losses involving James Eugene Holmes III or Wells Fargo Clearing Services, contact Patil Law, P.C. for a free, no-obligation consultation. Our experienced securities attorneys can review your case and explain your legal options.
Phone: 800-950-6553
Email: info@patillaw.com
Website: investmentlosslawyer.com
We work on a contingency fee basis—you pay no attorney fees unless we successfully recover money for you.
Disclaimer
The information in this post is based on FINRA BrokerCheck records and public filings. Allegations described are pending or unproven and may be contested. All investors are entitled to fair treatment under securities laws. This is attorney advertising. Prior results do not guarantee a similar outcome. This communication is for informational purposes only and does not create an attorney-client relationship.
