(CRD #2174697, Winston Salem, North Carolina)

November 24, 2025 – An AWC was issued in which James Eugene Holmes III was assessed a deferred fine of $10,000 and suspended from association with any FINRA member in all capacities for eight months. Without admitting or denying the findings, Holmes consented to the sanctions and to the entry of findings that he willfully violated Reg BI 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 that 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 to the firm that inaccurately stated her financial circumstances, investment experience, and investment objectives. The findings also included that Holmes exercised discretionary authority in the non discretionary accounts in at least five customers’ accounts 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. In addition, Holmes falsely attested in compliance attestations submitted 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. The suspension is in effect from December 1, 2025, through July 31, 2026. (FINRA Case #2022075386201) If you have suffered losses as a result of James Eugene Holmes III’s act and/or actions, we would like to hear from you. We are currently investigating claims on behalf of clients who have suffered significant losses in their portfolios that are managed by James Eugene Holmes III. The Schwartz Law Firm represents investors in claims against financial advisors and their firms. If you have questions about your potential claim or need assistance from an investment fraud lawyer, please contact us at  (813) 226-3372 or email Matthew Schwartz directly at mschwartz@tslfirm.com.