A former star broker and branch manager who was dismissed last month by LPL Financial and who appeared to be headed for Wunderlich Securities Inc. will not be hired, a spokeswoman for the firm, Kathy Ridley, confirmed.
Memphis, Tenn.-based Wunderlich, with around 210 financial advisers, has cut ties with James "Jeb" Bashaw, according to Ms. Ridley. She said that the decision was mutual.
“We have mutually agreed to end that relationship, or potential relationship,” she said. “Mr. Bashaw will not be coming over to Wunderlich.
Ms. Ridley declined to discuss specific reasons.
The split happened while Mr. Bashaw's official employment with Wunderlich remained pending regulatory approval of the transfer of his licenses, Ms. Ridley said. The Financial Industry Regulatory Authority Inc. listed Mr. Bashaw as having been registered with Wunderlich from Sept. 29 to Oct. 9. He is no longer registered, according to BrokerCheck.
The website for his former firm, James E. Bashaw & Co. of Houston, still redirects to Wunderlich, however, and at least three other brokers from his firm, including Mr. Bashaw's daughter, Mason Bashaw, had already joined Wunderlich and are staying there.
In 2011, Barron's magazine ranked Mr. Bashaw
as the top financial adviser in Texas, with total assets of $3.8 billion. He had a total of about two dozen advisers working under him in various offices.
Mr. Bashaw's next steps were not clear, and he could not immediately be reached for comment.
Meanwhile, his attorney, Anthony Paduano of Paduano & Weintraub, has called the allegations behind LPL's termination “false and defamatory,”
according to reports in the Houston Business Journal.
He has informed LPL that Mr. Bashaw will sue the firm over the allegations, although a lawsuit had not yet been filed, according to the report. Mr. Paduano did not immediately respond to a call and e-mail requesting comment.
Mr. Bashaw was terminated by LPL in September over allegations that he had participated in private securities transactions without providing written disclosure from LPL or obtaining written approval from the firm, and that he had borrowed from a client, according to records with Finra.
In a statement on BrokerCheck, he said he was unclear as to the specifics behind the allegations and had more than a dozen perfect audits.
A spokeswoman for LPL, Amanda Keating, said that the firm would not comment on the issue.
