Claimant alleges their registered representative recommended unsuitable alternative investments.

$26,000.00

$10,000.00

Bankruptcy

Claimants allege former registered representative recommended unsuitable investments.

$75,000.00

$35,000.00

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Jaime M. Westenbarger ("Respondent" or "Westenbarger"). The Commission finds that Westenbarger was a registered representative and investment adviser representative associated with several SEC-registered broker-dealers and investment advisers, respectively, from March 2003 until August 14, 2019. Westenbarger, 43 years old, is currently a resident of Brentwood, Tennessee. On June 24, 2020, the Administrator of the Corporations, Securities & Commercial Licensing Bureau of the Michigan Department of Licensing and Regulatory Affairs, issued and entered a final Consent Order Resolving Notice and Order To Cease and Desist in the Matter of Jaime Westenbarger, CRD# 4625703, Respondent, Complaint 341500 (the "Michigan Order"). The Michigan Order, pursuant to Westenbarger's consent, required, among other things, that Westenbarger cease and desist from violating the Michigan Securities Act, and prohibited him from conducting any business in Michigan regulated by the Michigan Securities Act or acting as a principal or consultant on behalf of an entity so engaged in that business. The Michigan Order found that when Westenbarger was a registered representative and an investment adviser representative of a registered broker-dealer and a registered investment adviser, respectively, he offered two investors from Michigan an investment in a "corporate note" for $200,000 and that he accepted a check from these two investors in that amount to be invested in the corporate note. The Michigan Order also found that Westenbarger offered a "short term CD" investment to another Michigan investor for $60,000 and that he accepted a check from that investor in that same amount to invest in the short term CD. The Michigan Order further found that, in each case, rather than investing the funds as represented, Westenbarger used the funds to pay for personal expenses. The Michigan Order concluded that Westenbarger's conduct violated Section 501 of the Michigan Securities Act, MCL 451.2501, which prohibits untrue statements of material fact in connection with the offer or sale of securities.

Order

Bar (Permanent)

association with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO

indefinite

4/19/2021

participation in any offering of a penny stock

indefinite

4/19/2021

Claimant alleges unsuitability of alternative investments causing financial harm. The allegations also include violations of rules, negligence, misrepresentations and omissions of material facts, and breach of fiduciary duty.

$7,500.00

Michigan

Respondent Jaime Westenbarger, in connection with the offer and sale of securities, misstated a material fact in connection with the offer and sale of a security when he represented he would invest RM and SM's funds in a corporate note, but instead used the funds to pay for personal expenses, contrary to section 501 of the Securities Act, MCL 451.2501. Respondent Jaime Westenbarger, in connection with the offer or sale of securities, misstated a material fact in connection with the offer or sale of a security when he represented to AW as power of attorney for LW that he would invest LW's funds in a certificate of deposit, but instead used the funds to pay for personal expenses, contrary to section 501 of the Securities Act, MCL 451.2501.

Consent Order Resolving Notice and Order to Cease and Desist

Civil and Administrative Penalty(ies)/Fine(s)

$1,500.00

Client alleges misrepresentation with his annuity purchases in August 2014 and November 2014.

$30,636.16

Claimants allege that in May 2018 the representative convinced them to purchase a corporate note and instead used the funds for his own purposes; that in June 2018, the representative convinced them to replace a variable annuity for no apparent reason; and that in July 2019 the representative made an unauthorized purchase of a UIT, which was unsuitable. Allegations include violations of the Michigan Securities Act and FINRA Conduct Rules, breach of contract, breach of fiduciary duty, fraud and conversion.

$212,000.00

$150,000.00

FINRA

Without admitting or denying the findings, Westenbarger consented to the sanction and to the entry of findings that he failed to provide documents requested by FINRA during the course of an investigation after it learned of the conduct disclosed in a Form U5 submitted by his member firm. The findings stated that Westenbarger intentionally provided a partial response, but did not substantially comply with all aspects of FINRA's request. The form U5 submitted by the firm disclosed that his termination was for a violation of firm policies and procedures regarding borrowing funds from clients.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All capacities

Indefinite

10/8/2019

Clients allege the annuity was an unsuitable investment.

$12,307.00

$12,307.02

Securities America, Inc.

Discharged

The representative was discharged for violating Firm policies and procedures regarding borrowing funds from clients.

Claimants allege former registered representative recommended unsuitable investments, over-concentrated their portfolios in high-risk investments, and misappropriated client funds. Claimants generally allege fraud, conversion, breach of contract, breach of fiduciary duties, and negligence.

$500,000.00

$22,500.00

Client alleges he was sold an Allianz Variable Annuity in 2017 that was unsuitable due to illiquidity of product.

$29,000.00

Client alleges that REIT products sold to her in July 2015 were unsuitable.

$165,000.00

The client's allegations that she has minimal resources and relies on Social Security is not accurate. She disclosed substantial assets and was looking for additional income from a portion of those assets. Considering her distribution and the current price, the client has not incurred any loss. Her assertion of loss is based on a non-solicited offer she received to buy her shares at a substantial discount and does not reflect the true value of her investment. I whole heartedly deny this claim.

CLIENT ALLEGES UNSUITABILITY OF A VARIABLE ANNUITY IN MAY 2006.

$5,000.00

$12,500.00

I BELIEVE THIS WAS SUITABLE AND THE CLIENTS MADE MONEY. THIS WAS SETTLED BECAUSE IT WAS CHEAPER THAN THE DEFENSE COSTS.

ONEAMERICA SECURITIES

Discharged

FORMATION OF CORPORATION WITHOUT PRIOR APPROVAL OF SUPERVISING PRINCIPAL AND BROKER DEALER COMPLIANCE DEPT.

RR RESIGNED ON 10/13/2006 AND HAS WRITTEN PROOF FROM PRIOR BD OF THEIR ACCEPTANCE OF THIS EFFECTIVE DATE.