JAMES HAL HEAFNERJAMES HAL HEAFNER Section Title Report Summary Broker Qualifications Registration...

BrokerCheck Report

JAMES HAL HEAFNER

Section Title

Report Summary

Broker Qualifications

Registration and Employment History

Disclosure Events

CRD# 4837072

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Page(s)

http://www.finra.org

About BrokerCheck®

BrokerCheck offers information on all current, and many former, registered securities brokers, and all current and formerregistered securities firms. FINRA strongly encourages investors to use BrokerCheck to check the background ofsecurities brokers and brokerage firms before deciding to conduct, or continue to conduct, business with them.

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qualifications, disciplinary actions, criminal convictions, civil judgments and arbitration awards. BrokerCheckreports for brokerage firms include information on a firm’s profile, history, and operations, as well as many of thesame disclosure events mentioned above.

· Please note that the information contained in a BrokerCheck report may include pending actions orallegations that may be contested, unresolved or unproven. In the end, these actions or allegations may beresolved in favor of the broker or brokerage firm, or concluded through a negotiated settlement with no admissionor finding of wrongdoing.

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CRD® and is a combination of: o information FINRA and/or the Securities and Exchange Commission (SEC) require brokers and

brokerage firms to submit as part of the registration and licensing process, and o information that regulators report regarding disciplinary actions or allegations against firms or brokers.

· How current is this information?· Generally, active brokerage firms and brokers are required to update their professional and disciplinary

information in CRD within 30 days. Under most circumstances, information reported by brokerage firms, brokersand regulators is available in BrokerCheck the next business day.

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· To check the background of an investment adviser firm or representative, you can search for the firm orindividual in BrokerCheck. If your search is successful, click on the link provided to view the available licensingand registration information in the SEC's Investment Adviser Public Disclosure (IAPD) website athttps://www.adviserinfo.sec.gov. In the alternative, you may search the IAPD website directly or contact your statesecurities regulator at http://www.finra.org/Investors/ToolsCalculators/BrokerCheck/P455414.

· Are there other resources I can use to check the background of investment professionals?· FINRA recommends that you learn as much as possible about an investment professional before deciding

to work with them. Your state securities regulator can help you research brokers and investment adviserrepresentatives doing business in your state.

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For additional information aboutthe contents of this report, pleaserefer to the User Guidance orwww.finra.org/brokercheck. Itprovides a glossary of terms and alist of frequently asked questions,as well as additional resources.

brokercheck.finra.org


https://www.AdviserInfo.sec.gov

http://www.finra.org/Investors/ToolsCalculators/BrokerCheck/P455414


http://brokercheck.finra.org/Support/Terms

JAMES H. HEAFNER

CRD# 4837072

This broker is not currently registered.

Report Summary for this Broker

This report summary provides an overview of the broker's professional background and conduct. Additionalinformation can be found in the detailed report.

Disclosure Events

All individuals registered to sell securities or provideinvestment advice are required to disclose customercomplaints and arbitrations, regulatory actions,employment terminations, bankruptcy filings, andcriminal or civil judicial proceedings.

Are there events disclosed about this broker? Yes

The following types of disclosures have beenreported:

Type Count

Regulatory Event 2

Customer Dispute 3

Termination 1

Investment Adviser RepresentativeInformation

https://www.adviserinfo.sec.gov

The information below represents the individual'srecord as a broker. For details on this individual'srecord as an investment adviser representative,visit the SEC's Investment Adviser PublicDisclosure website at



This broker has passed:

0 Principal/Supervisory Exams

2 General Industry/Product Exams

2 State Securities Law Exams

Registration History

This broker was previously registered with thefollowing securities firm(s):

TAYLOR CAPITAL MANAGEMENT INC.CRD# 43559CHARLOTTE, NC03/2011 - 01/2018

B

KCD FINANCIAL, INC.CRD# 127473CHARLOTTE, NC02/2008 - 03/2009

B

SOUTHEAST INVESTMENTS, N.C., INC.CRD# 43035CHARLOTTE, NC06/2007 - 10/2007

B

www.finra.org/brokercheck User Guidance

1�2020 FINRA. All rights reserved. Report about JAMES H. HEAFNER.


https://adviserinfo.sec.gov/individual/summary/4837072

http://www.finra.org/brokercheck

http://www.finra.org/brokercheck_reports



Registrations

This section provides the self-regulatory organizations (SROs) and U.S. states/territories the broker is currently registered and licensed with, thecategory of each license, and the date on which it became effective. This section also provides, for every brokerage firm with which the broker iscurrently employed, the address of each branch where the broker works.








Industry Exams this Broker has Passed

This individual has passed 0 principal/supervisory exams, 2 general industry/product exams, and 2 state securities law exams.

This section includes all securities industry exams that the broker has passed. Under limited circumstances, a broker may attain a registrationafter receiving an exam waiver based on exams the broker has passed and/or qualifying work experience. Any exam waivers that the broker hasreceived are not included below.

Exam Category Date

Principal/Supervisory Exams

No information reported.

Exam Category Date

General Industry/Product Exams

Securities Industry Essentials Examination 01/22/2018SIEB

Investment Company Products/Variable Contracts RepresentativeExamination

09/24/2004Series 6B

Exam Category Date

State Securities Law Exams

Uniform Securities Agent State Law Examination 07/08/2011Series 63B

Uniform Investment Adviser Law Examination 01/07/2009Series 65IA

Additional information about the above exams or other exams FINRA administers to brokers and other securities professionals can be found atwww.finra.org/brokerqualifications/registeredrep/.





www.finra.org/brokerqualifications/registeredrep/



Professional Designations

This section details that the representative has reported 1 professional designation(s).

Certified Financial Planner

This representative holds or did hold 1 professional designation(s) that may have been used to qualify as an Investment Advisor representative.Please check with the appropriate designation authority for verification that the designation is still in effect. The contact information for theseprofessional designation authorities can be found on the website for the North American Securities Administrators Association athttp://www.nasaa.org





http://www.nasaa.org



Registration History

Registration Dates Firm Name CRD# Branch Location

The broker previously was registered with the following firms:

B 03/2011 - 01/2018 TAYLOR CAPITAL MANAGEMENT INC. 43559 CHARLOTTE, NC

B 02/2008 - 03/2009 KCD FINANCIAL, INC. 127473 CHARLOTTE, NC

B 06/2007 - 10/2007 SOUTHEAST INVESTMENTS, N.C., INC. 43035 CHARLOTTE, NC

B 01/2005 - 06/2007 CAPITAL INVESTMENT GROUP, INC. 14752 CHARLOTTE, NC

B 09/2004 - 02/2005 PARK AVENUE SECURITIES LLC 46173 NEW YORK, NY

Employment History

Employment Employer Name Investment RelatedPosition Employer Location

This section provides up to 10 years of an individual broker's employment history as reported by the individual broker on the most recently filedForm U4.

Please note that the broker is required to provide this information only while registered with FINRA or a national securities exchangeand the information is not updated via Form U4 after the broker ceases to be registered. Therefore, an employment end date of"Present" may not reflect the broker's current employment status.

07/2014 - Present RETIREMENT WEALTH ADVISORS, INC. INVESTMENTADVISERREPRESENTATIVE

Y CHARLOTTE, NC, UnitedStates

01/2012 - Present HEAFNER FINANCIAL SOLUTIONS OWNER/INSURANCESALES/IAR/TAX PREP


02/2004 - Present CHRISTMAS MOUNTAIN DEVELOPMENT PRESIDENT AND 50%OWNER

N CHARLOTTE, NC, UnitedStates

02/2011 - 01/2018 TCM SECURITIES, INC. FORMERLYKNOWN AS TAYLOR CAPITALMANAGEMENT

REG REP Y WOODSTOCK, GA, UnitedStates

04/2011 - 07/2014 HORTER INVESTMENT MANAGEMENT,LLC

INVESTMENTADVISERREPRESENTATIVE


09/2006 - 01/2012 HEAFNER SENIOR SOLUTIONS, LLC INSURANCE AGENT Y CHARLOTTE, NC, UnitedStates







Employment History, continued

Employment Employer Name Investment RelatedPosition Employer Location

03/2009 - 04/2011 BROOKSTONE CAPITAL MANAGEMENTLLC

INVESTMENTADVISERREPRESENTATIVE


Other Business Activities

This section includes information, if any, as provided by the broker regarding other business activities the broker is currently engaged in either asa proprietor, partner, officer, director, employee, trustee, agent or otherwise. This section does not include non-investment related activity that isexclusively charitable, civic, religious or fraternal and is recognized as tax exempt.

1) 02/2004 - PRESENT, CHRISTMAS MOUNTAIN DEVELOPMENT COMPANY, 3511 Lakeside Drive, CHARLOTTE, NC 28270; 50%OWNER/REAL ESTATE DEVELOPMENT, HOURS DEDICATED: LESS THAN 1 HOUR A WEEK (0 HOURS DURING TRADING HOURS)

2) 01/2012 - PRESENT, OWNER-HEAFNER FINANCIAL SOLUTIONS, INC., 10700 SIKES PLACE., SUITE 200, CHARLOTTE, N.C. 28277.INVESTMENT-RELATED-TAX PREPARATION & INSURANCE DBA FOR INVESTMENT ADVISORY-HOURS DEDICATED: 280/MONTH(280/MONTH DURING TRADING HOURS),






Disclosure Events

What you should know about reported disclosure events:

1. All individuals registered to sell securities or provide investment advice are required to disclose customer complaints and arbitrations,regulatory actions, employment terminations, bankruptcy filings, and criminal or civil judicial proceedings.

2. Certain thresholds must be met before an event is reported to CRD, for example: o A law enforcement agency must file formal charges before a broker is required to disclose a particular criminal event. o A customer dispute must involve allegations that a broker engaged in activity that violates certain rules or conduct governing the

industry and that the activity resulted in damages of at least $5,000. o

3. Disclosure events in BrokerCheck reports come from different sources: o As mentioned at the beginning of this report, information contained in BrokerCheck comes from brokers, brokerage firms and

regulators. When more than one of these sources reports information for the same disclosure event, all versions of the event willappear in the BrokerCheck report. The different versions will be separated by a solid line with the reporting source labeled.

o4. There are different statuses and dispositions for disclosure events:

o A disclosure event may have a status of pending, on appeal, or final.§ A "pending" event involves allegations that have not been proven or formally adjudicated.§ An event that is "on appeal" involves allegations that have been adjudicated but are currently being appealed.§ A "final" event has been concluded and its resolution is not subject to change.

o A final event generally has a disposition of adjudicated, settled or otherwise resolved.§ An "adjudicated" matter includes a disposition by (1) a court of law in a criminal or civil matter, or (2) an administrative

panel in an action brought by a regulator that is contested by the party charged with some alleged wrongdoing.§ A "settled" matter generally involves an agreement by the parties to resolve the matter. Please note that brokers and

brokerage firms may choose to settle customer disputes or regulatory matters for business or other reasons.§ A "resolved" matter usually involves no payment to the customer and no finding of wrongdoing on the part of the

individual broker. Such matters generally involve customer disputes.

For your convenience, below is a matrix of the number and status of disclosure events involving this broker. Further informationregarding these events can be found in the subsequent pages of this report. You also may wish to contact the broker to obtain furtherinformation regarding these events.

Final On AppealPending

Regulatory Event 0 2 0

Customer Dispute 2 1 N/A

Termination N/A 1 N/A






Disclosure Event Details

When evaluating this information, please keep in mind that a discloure event may be pending or involve allegations that are contested and havenot been resolved or proven. The matter may, in the end, be withdrawn, dismissed, resolved in favor of the broker, or concluded through anegotiated settlement for certain business reasons (e.g., to maintain customer relationships or to limit the litigation costs associated with disputingthe allegations) with no admission or finding of wrongdoing.

This report provides the information exactly as it was reported to CRD and therefore some of the specific data fields contained in the report maybe blank if the information was not provided to CRD.

Regulatory - Final

This type of disclosure event may involve (1) a final, formal proceeding initiated by a regulatory authority (e.g., a state securities agency, self-regulatory organization, federal regulatory such as the Securities and Exchange Commission, foreign financial regulatory body) for a violation ofinvestment-related rules or regulations; or (2) a revocation or suspension of a broker's authority to act as an attorney, accountant, or federalcontractor.

Disclosure 1 of 2

Reporting Source: Regulator

Regulatory Action InitiatedBy:

FINRA

Sanction(s) Sought: Suspension

Date Initiated: 03/31/2020

Docket/Case Number: 19-03613

Employing firm when activityoccurred which led to theregulatory action:

N/A

Product Type: No Product

Allegations: Respondent Heafner failed to comply with an arbitration award or settlementagreement or to satisfactorily respond to a FINRA request to provide informationconcerning the status of compliance.

Current Status: Final

Resolution: Letter

Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?





https://www.finra.org/arbitration-mediation/arbitration-awards-online?search=19-03613


Resolution Date: 03/31/2020

Sanctions Ordered:


No

Suspension

If the regulator is the SEC,CFTC, or an SRO, did theaction result in a finding of awillful violation or failure tosupervise?

No

(1) willfully violated anyprovision of the SecuritiesAct of 1933, the SecuritiesExchange Act of 1934, theInvestment Advisers Act of1940, the InvestmentCompany Act of 1940, theCommodity Exchange Act, orany rule or regulation underany of such Acts, or any ofthe rules of the MunicipalSecurities Rulemaking Board,or to have been unable tocomply with any provision ofsuch Act, rule or regulation?

(2) willfully aided, abetted,counseled, commanded,induced, or procured theviolation by any person ofany provision of theSecurities Act of 1933, theSecurities Exchange Act of1934, the InvestmentAdvisers Act of 1940, theInvestment Company Act of1940, the CommodityExchange Act, or any rule orregulation under any of suchActs, or any of the rules ofthe Municipal SecuritiesRulemaking Board? or






Regulator Statement Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554,Respondent Heafner is suspended on March 31, 2020 for failure to comply with anarbitration award or settlement agreement or to satisfactorily respond to a FINRArequest to provide information concerning the status of compliance.


(3) failed reasonably tosupervise another personsubject to your supervision,with a view to preventing theviolation by such person ofany provision of theSecurities Act of 1933, theSecurities Exchange Act of1934, the InvestmentAdvisers Act of 1940, theInvestment Company Act of1940, the CommodityExchange Act, or any rule orregulation under any suchActs, or any of the rules ofthe Municipal SecuritiesRulemaking Board?

Capacities Affected: All capacities

Duration: Indefinite

Start Date: 03/31/2020

End Date:

Sanction 1 of 1

Sanction Type: Suspension






Regulator Statement Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554,Respondent Heafner is suspended on March 31, 2020 for failure to comply with anarbitration award or settlement agreement or to satisfactorily respond to a FINRArequest to provide information concerning the status of compliance.

Disclosure 2 of 2

i


Regulatory Action InitiatedBy:

FINRA

Sanction(s) Sought: Other: N/A

Date Initiated: 07/30/2019

Docket/Case Number: 2018059962701

Employing firm when activityoccurred which led to theregulatory action:

Taylor Capital Management Company, Inc.


Allegations: Without admitting or denying the findings, Heafner consented to the sanction andto the entry of findings that he refused to appear for on-the-record testimonyrequested by FINRA in connection with its inquiry into his possible involvement inan outside business activity that was not approved by his member firm.

Current Status: Final

Resolution: Acceptance, Waiver & Consent(AWC)

Resolution Date: 07/30/2019

Sanctions Ordered:


No

Bar (Permanent)

No





https://www.finra.org/rules-guidance/oversight-enforcement/finra-disciplinary-actions?search=2018059962701


If the regulator is the SEC,CFTC, or an SRO, did theaction result in a finding of awillful violation or failure tosupervise?

No

(1) willfully violated anyprovision of the SecuritiesAct of 1933, the SecuritiesExchange Act of 1934, theInvestment Advisers Act of1940, the InvestmentCompany Act of 1940, theCommodity Exchange Act, orany rule or regulation underany of such Acts, or any ofthe rules of the MunicipalSecurities Rulemaking Board,or to have been unable tocomply with any provision ofsuch Act, rule or regulation?









Capacities Affected: All capacities

Duration: Indefinite

Start Date: 07/30/2019

End Date:

Sanction 1 of 1

Sanction Type: Bar (Permanent)






Customer Dispute - Award / Judgment

This type of disclosure event involves a final, consumer-initiated, investment-related arbitration or civil suit containing allegations of sales practiceviolations against the broker that resulted in an arbitration award or civil judgment for the customer.

Disclosure 1 of 1


Employing firm whenactivities occurred which ledto the complaint:

Allegations:

Taylor Capital Management Inc.

James Heafner was a subject of a customer's complaint against his member firmthat asserted the following causes of action:violation of common law fraud; breach of fiduciary duty; negligent failure tosupervise; and negligence.

Product Type: Other: unregistered security

Alleged Damages: $200,000.00

Arbitration/Reparation Claimfiled with and Docket/CaseNo.:

FINRA - CASE #18-03960

Date Notice/Process Served: 11/16/2018

Arbitration Pending? No

Disposition: Award

Disposition Date: 11/12/2019

Disposition Detail: James Heafner was a Subject Of the customer's complaint alleging JamesHeafner and his member firm caused sales practice violations. James Heafner'smember firm is liable for and shall pay to Claimant the sum of $149,618.42 incompensatory damages, plus interest for $18,618.42. Respondent is liable for andshall pay to Claimant the sum of $59,847.37 in attorneys' fees, and the sum of$300.00 to reimburse her for the non-refundable portion of the filing fee previouslypaid to FINRA Office of Dispute Resolution.

Arbitration Information

iReporting Source: Firm


Allegations:

TCM Securities, Inc.

On November 16, 2018, Claimant filed an Arbitration Statement of Claim withFINRA Dispute Resolution, Case No. 18-03960 which alleged former TCM RRJames Hal Heafner recommended the claimant to invest in 1st Global Capital,LLC, an unregistered security which was also an unsuitable recommendationbased upon claimant's specific investment objectives. The arbitration claim alsoalleged that the firm Taylor Capital Management, Inc. (now TCM Securities, Inc.)failed to properly supervise Heafner.





https://www.finra.org/arbitration-mediation/arbitration-awards-online?search=18-03960


Allegations: On November 16, 2018, Claimant filed an Arbitration Statement of Claim withFINRA Dispute Resolution, Case No. 18-03960 which alleged former TCM RRJames Hal Heafner recommended the claimant to invest in 1st Global Capital,LLC, an unregistered security which was also an unsuitable recommendationbased upon claimant's specific investment objectives. The arbitration claim alsoalleged that the firm Taylor Capital Management, Inc. (now TCM Securities, Inc.)failed to properly supervise Heafner.

Product Type: Other: Unregistered Security


Date Complaint Received: 11/19/2018

Complaint Pending? Yes

Settlement Amount:

Individual ContributionAmount:

Firm Statement The primary allegation against Respondent: Taylor Capital Management, Inc. isthat the firm failed to supervise its RR: James H. Heafner's outside businessactivities. This allegation is false and unsubstantiated because RR Heafner failedto advise TCM of his intention to offer, sell or recommend 1st Global Capitalsecurities prior to his recommendation to Claimant. When Hefner did provide TCMwith written notification of his intention to act as an agent for 1st Global Capital,LLC, and requested permission to conduct outside business activities for 1stGlobal, TCM Compliance denied his request and he resigned from TCM shortlythereafter. According to the arbitration claim, Heafner made an unsuitablerecommendation to claimant contrary to her specific investment objectives.

Customer Complaint Information

Is this an oral complaint? No

Is this a written complaint? No

Is this an arbitration/CFTCreparation or civil litigation?

Yes

Arbitration/Reparation forumor court name and location:

FINRA Office of Dispute Resolution

Docket/Case #: 18-03960

Filing date ofarbitration/CFTC reparationor civil litigation:

11/16/2018






Customer Dispute - Pending

This type of disclosure event involves (1) a pending consumer-initiated, investment-related arbitration or civil suit that contains allegations of salespractice violations against the broker; or (2) a pending, consumer-initiated, investment-related written complaint containing allegations that thebroker engaged in, sales practice violations resulting in compensatory damages of at least $5,000, forgery, theft, or misappropriation, orconversion of funds or securities.

Disclosure 1 of 2

Reporting Source: Firm


Allegations:


In November of 2017, Respondent Heafner recommended Claimant invest$100,000 in First Global Notes which was an unsuitable investmentrecommendation and Heafner also failed to disclose material facts which was abreach of fiduciary duty, a breach of contract and gross negligence. Claimantalleged that Taylor Capital Management failed to properly supervise RR Heafner.

Product Type: Debt-Corporate



Arbitration Pending? Yes

Firm Statement Although Taylor Capital Management, Inc. ("TCM") is a named Respondent, TCMrefused to approve RR Heafner's request to act as an Agent for 1st Global as anoutside business activity


Alleged Damages AmountExplanation (if amount notexact):

Claimant invested $100,000 in 1st Blobal Notes however the Statement of Claimrequests unspecified compensatory damages, interest, recision, punitive damages,costs of proceeding and other relief as is just and proper.

Arbitration/CFTC reparationclaim filed with (FINRA, AAA,CFTC, etc.):



Disclosure 2 of 2

i








Allegations:


Arbitration claims the RRs James Hal Heafner sold 1st Global Capital, LLCMemorandum of Indebtedness to Claimant on 9-29-2017 and TCM Securities, Inc.failed to supervise such outside business activity.

Product Type: Debt-Government



Arbitration Pending? Yes

Firm Statement The primary allegation against Respondent: TCM Securities, Inc. is that TCMSecurities, Inc. failed to supervise its RR: James H. Heafner's outside businessactivities. This allegation is false and unsubstantiated because RR Heafner failedto advise TCM of his intention to offer, sell or recommend 1st Global Debtinstruments prior to the sale to [REDACTED]. When Hefner did provide TCM withwritten notification of his intention to act as an agent for 1st Global Capital, LLC,and requested permission to conduct outside business activities for 1st Global,TCM Compliance denied his request and he resigned from TCM shortly thereafter.


Arbitration/CFTC reparationclaim filed with (FINRA, AAA,CFTC, etc.):








Employment Separation After Allegations

This type of disclosure event involves a situation where the broker voluntarily resigned, was discharged, or was permitted to resign after beingaccused of (1) violating investment-related statutes, regulations, rules or industry standards of conduct; (2) fraud or the wrongful taking ofproperty; or (3) failure to supervise in connection with investment-related statutes, regulations, rules, or industry standards of conduct.

Disclosure 1 of 1


Employer Name: Retirement Wealth Advisors

Termination Type: Discharged

Termination Date: 08/31/2018

Allegations: Failure to follow written policies and procedures in regard to Outside BusinessActivities.







End of Report

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JAMES HAL HEAFNERJAMES HAL HEAFNER Section Title Report Summary Broker Qualifications Registration...

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