Taylor Capital Management Inc., a Woodstock, Georgia, Broker-Dealer, and Prominent Charlotte, North Carolina, Financial Adviser James Hal Heafner Hit With $1 Million Arbitration Award

Arbitration Panel Finds Securities Fraud in the Sale of 1 Global Capital, LLC

First Large 1 Global Capital, LLC, Award

ST. PETERSBURG, Fla., Oct. 09, 2019 (GLOBE NEWSWIRE) -- Goodman & Nekvasil, P.A., announces that they have won a $1.03 million FINRA arbitration award against James Hal Heafner (“Heafner”), formerly a financial adviser in Charlotte, North Carolina, and his broker-dealer, Taylor Capital Management Inc. (“Taylor Capital”).  This award includes a specific finding that Taylor Capital and Heafner committed securities fraud in the sale of 1 Global Capital, LLC, and includes $400,000 in punitive damages.

James Heafner, President of Heafner Financial Solution, was a well-known Charlotte, North Carolina, financial adviser for many years.  He gave financial advice on local TV stations such as WBTV, WCNC and WSOC.  Heafner also promoted himself on local radio and with financial self-help books such as, “SuccessOnomics” and “Retire Abundantly.”

During the period between July 2017 and December 2017, Heafner recommended that Charlotte retirees James N. Heald, Sandra M. Gizzi, Joseph W. Taborek, Jerry F. Heath and Janet M. Heath invest $595,772.79 in 1 Global Capital, LLC (“1 Global”).  1 Global fraudulently raised $287 million from investors and filed for bankruptcy in July 2018, less than one year after the claimants’ investments.  Heald, a 71 year old retired software programmer; Gizzi, a 65 year old retired electrical technician; Taborek, a 76 year old semi-retiree; Jerry  Heath, a 76 year old retired salesman for a paper goods company and his wife, Janet Heath, a 68 year old retired teacher’s assistant, lost most of their investment. 

The evidence at the arbitration hearing showed that Heafner falsely represented that 1 Global was a safe investment and failed to disclose the risks of this investment. In awarding punitive damages, the Panel considered Heafner’s testimony that he sold more than $10 million in 1 Global and his admission that the majority of these sales occurred after he was put on notice that 1 Global was under FINRA investigation, and that FINRA believed the advertising concerning these notes was inaccurate, misleading and exaggerated and that investors were not being fairly advised on what they were being offered. The Panel also considered evidence that Taylor Capital ignored red flags concerning Heafner’s involvement with 1 Global. 

The Arbitration Panel awarded $1,033,362.17 against Heafner and Taylor Capital, which included $100,000 in punitive damages to each of the Claimants and $156,614.05 in attorneys’ fees.  The Arbitration Panel specifically found that Heafner and Taylor Capital committed “fraud, intentional misrepresentation, reckless disregard of high risk and reckless disregard of securities statutes by selling unregistered securities.” 

“We are grateful that the Panel saw through Heafner’s excuses and Taylor Capital’s inaction at the final hearing,” said Kalju Nekvasil, Esq., of Goodman & Nekvasil, P.A., the St. Petersburg, Florida, law firm that represented the Claimants. When 1 Global filed for bankruptcy, Heafner sent each of his clients a letter stating that, “I could easily retire and move to an island, but our job is to try and do our best for you, knowing that life is full of perils.” Ironically, Heafner retired shortly after sending that letter, moved to Puerto Rico, and abandoned his clients, added Kalju Nekvasil, Esq.