March, 2025 | Based in Austin, TX
Concerned about your investments with James Craig Etter? Don’t navigate this complex situation alone. Call 800-950-6553 or complete our online form to schedule your no-obligation case evaluation with experienced securities fraud attorneys today.
Key Information About James Craig Etter
- Full Name: James Craig Etter
- CRD Number: 5576744
- Current Location: Austin, TX
- Current Registration Status: Not currently registered
- Previous Employers:
- NatAlliance Securities, LLC (01/2012 – 04/2023)
- Morgan Stanley Smith Barney (06/2009 – 01/2012)
- Morgan Stanley & Co. Incorporated (10/2008 – 06/2009)
- Disclosure Events:
- 1 Regulatory Event
- 1 Criminal Event (dismissed)
- 1 Employment Termination
- Current Regulatory Status: Suspended by FINRA for four months (11/18/2024 – 03/17/2025)
- FINRA Fine: $10,000
Unauthorized Private Securities Transactions and Regulatory Action
James Craig Etter, formerly registered with NatAlliance Securities, LLC in Austin, Texas, is currently facing serious regulatory consequences for violations of FINRA rules regarding private securities transactions and outside business activities. On November 12, 2024, FINRA sanctioned Etter after he consented to findings that he participated in private securities transactions without proper disclosure to his member firm.
According to FINRA’s investigation, Etter solicited investments totaling $110,000 for an entity he personally founded and controlled. During these solicitations, he answered investors’ questions about the investment opportunity, collected investment paperwork, and handled investment funds—all without prior disclosure to NatAlliance Securities as required by industry regulations. While the FINRA report indicates that the investors eventually received their funds back, the unauthorized nature of these transactions constitutes a significant violation of FINRA Rule 3280, which governs private securities transactions by registered representatives.
Additionally, FINRA found that Etter engaged in an undisclosed outside business activity (OBA) by providing business development and due diligence services to a solar equipment company. For this work, he received approximately $66,000 in compensation, again without properly disclosing this activity to his firm or obtaining its approval. This conduct violates FINRA Rule 3270, which requires registered representatives to provide written notice to their firms before engaging in any business activity outside their relationship with the member firm.
As a result of these violations, FINRA imposed a four-month suspension from the securities industry, running from November 18, 2024, through March 17, 2025, along with a $10,000 fine. This disciplinary action effectively bars Etter from associating with any FINRA member firm in any capacity during the suspension period, significantly impacting his ability to conduct securities business.
Employment Separation Following Regulatory Scrutiny
Prior to the formal FINRA action, Etter’s employment with NatAlliance Securities, LLC ended on April 20, 2023, through what was characterized as a voluntary resignation. However, the circumstances surrounding his departure were anything but routine. According to the FINRA BrokerCheck report, FINRA examination staff had identified Etter’s participation in a “private securities transaction” that had not been approved by his firm as required by FINRA Rule 3280.
The timing of Etter’s resignation—coming immediately after regulatory questioning about his undisclosed activities—suggests it may have been prompted by the firm’s discovery of these violations. This pattern of resignation following regulatory inquiry is often seen in the securities industry when misconduct is identified, as firms seek to distance themselves from representatives who have violated industry rules.
The private securities transactions in question reportedly involved several product types, including over-the-counter (OTC) equity securities, options, and Regulation D offerings. These types of investments can present significant risks to investors, particularly when conducted outside the supervising firm’s oversight and compliance framework.
Multiple Business Ventures Outside Brokerage Activities
The FINRA BrokerCheck report reveals that Etter was simultaneously operating multiple business ventures while registered with NatAlliance Securities. These outside business activities included:
- Axximum Funding LLC – A solar installation financing company where Etter served as owner, established in June 2021
- SLTR Holdings LLC – A solar acquisition company with Etter as owner, also established in June 2021
- Affirm Solution – A fixed income information website owned by Etter, started in June 2021
- Infinite Acquisitions Group – A company purchasing nonperforming second liens, where Etter served as owner, launched in June 2021
While registered representatives are permitted to engage in outside business activities with proper disclosure and firm approval, Etter’s failure to disclose at least some of these activities—particularly those that resulted in substantial compensation—constitutes a breach of his regulatory obligations. The concentration of multiple business launches in June 2021 is particularly noteworthy, as it suggests a coordinated effort to establish several business ventures simultaneously, possibly without adequate attention to disclosure requirements.
The nature of these businesses, particularly those involved in solar financing and acquisition, appears connected to the undisclosed outside business activity for which Etter was later sanctioned by FINRA. The report specifically notes that he provided “business development and due diligence services to a solar equipment company” without proper disclosure, receiving significant compensation for this work.
Prior Criminal Charges
Etter’s record also includes a criminal disclosure from January 2003, involving felony charges of unlawful restraint and assault on a public servant in Travis County, Texas. According to his statement in the FINRA report, these charges stemmed from an incident where he attempted to intervene in a physical altercation while working as a bartender. Etter claimed he was trying to protect someone being attacked by multiple individuals when law enforcement became involved without his knowledge, leading to his arrest.
Both charges were ultimately dismissed—the assault charge on January 27, 2003, and the unlawful restraint charge on November 18, 2003. While these dismissed charges occurred approximately two decades ago, predating Etter’s securities industry career, they are nevertheless part of his regulatory disclosure history and provide context for evaluating his overall professional conduct.
Professional Background and Securities Industry Experience
Etter entered the securities industry in October 2008 when he joined Morgan Stanley & Co. Incorporated. He remained with Morgan Stanley through its transition to Morgan Stanley Smith Barney until January 2012, at which point he moved to NatAlliance Securities, LLC, where he remained until his resignation in April 2023.
Throughout his career, Etter obtained several securities industry qualifications, including:
- Securities Industry Essentials (SIE) Examination
- Futures Managed Funds Examination (Series 31)
- General Securities Representative Examination (Series 7)
- Uniform Combined State Law Examination (Series 66)
These qualifications allowed him to work as a general securities representative and provide investment advice to clients. It’s worth noting that Etter did not obtain any principal or supervisory licenses during his industry tenure, limiting his responsibilities to client-facing activities rather than supervisory roles over other representatives.
Legal and Regulatory Framework: Understanding the Violations
The securities industry operates under strict regulatory guidelines designed to protect investors and maintain market integrity. Etter’s actions appear to have violated several fundamental principles and specific FINRA rules:
- FINRA Rule 3280: Private Securities Transactions This rule requires registered representatives to provide written notice to their member firms before participating in any private securities transaction. The firm must then either approve or disapprove the representative’s participation. Etter’s solicitation of $110,000 from investors for his own entity without prior disclosure violates this basic requirement.
- FINRA Rule 3270: Outside Business Activities This rule mandates that registered representatives notify their firms in writing before engaging in any business activity outside the scope of their relationship with the member firm. Etter’s undisclosed work for a solar equipment company, for which he received $66,000 in compensation, constitutes a clear violation of this rule.
- FINRA Rule 2010: Standards of Commercial Honor and Principles of Trade This foundational rule requires brokers to observe high standards of commercial honor and just and equitable principles of trade. Violations of other specific rules generally also constitute violations of this broader standard of conduct.
The regulatory action taken against Etter—a four-month suspension and $10,000 fine—reflects the seriousness with which FINRA views these violations. Such sanctions are designed not only to penalize the individual representative but also to deter similar misconduct across the industry.
Red Flags for Investors
Etter’s case highlights several warning signs that investors should watch for in their relationships with financial advisors:
- Mixing Personal Business Ventures with Professional Investment Advice When a financial advisor solicits investments for companies or ventures they personally control, it creates an inherent conflict of interest. Their recommendations may be motivated by personal gain rather than the client’s best interests.
- Solicitations for Investments Outside the Firm Any request to invest in opportunities that aren’t offered through and supervised by the advisor’s registered firm should be approached with extreme caution. These “selling away” scenarios remove the protective oversight that brokerage firms provide.
- Multiple Side Businesses While many financial professionals have legitimate outside interests, the operation of multiple business ventures simultaneously may indicate divided attention and conflicting priorities that could compromise the quality of investment advice.
- Regulatory Disclosures Regular checks of a financial advisor’s background through FINRA’s BrokerCheck can reveal important disciplinary history and disclosures that might influence your decision to work with them.
- Unusual Timing of Business Changes Resignations that coincide with regulatory inquiries, as in Etter’s case, may signal underlying problems that prompted the departure rather than a routine career change.
Legal Options for Affected Investors
If you’ve conducted business with James Craig Etter and are concerned about how your investments were handled, several legal avenues may be available to recover potential losses:
- FINRA Arbitration FINRA provides an arbitration forum specifically designed to resolve disputes between investors and brokers. This process is generally faster and less formal than court litigation. For claims involving selling away or undisclosed outside business activities, both the individual broker and the supervising firm may potentially be liable.
- Claims Against the Brokerage Firm Brokerage firms have a duty to supervise their representatives. NatAlliance Securities, LLC may bear responsibility for failing to detect and prevent Etter’s undisclosed activities. This concept, known as “failure to supervise,” is a common basis for recovery in securities arbitration.
- Regulatory Recovery Funds In some cases, regulatory actions may result in the creation of funds to compensate affected investors. Monitoring FINRA and SEC announcements regarding the Etter case may reveal if such funds become available.
- Statute of Limitations Considerations It’s important to act promptly if you believe you’ve been harmed. FINRA arbitration claims typically must be filed within six years of the event giving rise to the claim, but this timeline can vary based on specific circumstances.
Protcting Yourself from Investment Fraud
The Etter case provides valuable lessons for all investors on how to protect themselves from potential investment fraud:
- Verify Advisor Credentials Always check an advisor’s registration status, employment history, and disciplinary record through FINRA’s BrokerCheck or the SEC’s Investment Adviser Public Disclosure database.
- Understand the Investments You’re Making Never invest in products or ventures you don’t fully understand, especially those presented as exclusive opportunities outside normal channels.
- Maintain Written Records Keep documentation of all communications with your financial advisor, including emails, texts, and notes from conversations about investment recommendations.
- Be Wary of Conflicts of Interest Question situations where your advisor stands to benefit personally from your investment decisions beyond their normal commission or fee structure.
- Report Suspicious Activity Promptly If you suspect misconduct, report it immediately to the firm’s compliance department, FINRA, and state securities regulators.
How Our Investment Fraud Attorneys Can Help
Our experienced investment fraud attorneys specialize in representing investors who have suffered financial losses due to broker misconduct. We understand the complex regulations governing the securities industry and have a proven track record of recovering funds for victimized investors.
When you work with our firm, we will:
- Conduct a Comprehensive Case Evaluation We’ll thoroughly review your account statements, communications with your advisor, and other relevant documents to assess the strength of your case.
- Identify All Potential Claims Based on our analysis of Etter’s conduct and your specific situation, we’ll determine all viable legal claims, including potential claims against NatAlliance Securities for supervisory failures.
- Pursue Maximum Recovery We’ll develop a strategic approach to pursue the maximum possible recovery for your losses, whether through FINRA arbitration, direct negotiation, or other appropriate means.
- Represent You Through the Process Our attorneys will handle all aspects of your case, from filing the initial claim to negotiating a settlement or presenting your case before arbitrators.
- Work on a Contingency Fee Basis We typically work on a contingency fee basis, meaning we only get paid if we recover money for you.
Don’t wait to seek the justice and financial recovery you deserve. If you’ve experienced losses while working with James Craig Etter or have concerns about your investments, reach out today for a confidential consultation. Our experienced securities fraud attorneys can help you understand your options and pursue the compensation you deserve. Call 800-950-6553 or now or fill out our secure online form to take the first step toward financial recovery.
