Former Linsco Broker James J. Buchanan Charged with Fraud

Former Linsco Stock Broker James J. Buchanan was charged on May 12 with fraud and theft, according to an indictment filed with the Maricopa County Superior Court in Arizona.

The charges arose from a fraudulent scheme perpetrated by James Buchanan since 2001 in the Phoenix - Scottsdale area. Buchanan allegedly stole about $5 million from more than 30 victims, possibly as many as 40.

Most of his victims are members of the same congregation as Buchanan. They trusted him due to their common affiliation with the Christ Life Church of Tempe. Buchanan abused their trust, and also stole $1 million from his church, according to the indictment.

John S. Chapman & Associates has investigated this claim and determined that Buchanan made fraudulent promises to investors in order to get their money. He indicated that the investors' funds would be placed in safe investments that generated high rates of return. Many of his victims trusted him with their life savings.

Chapman & Associates determined that, instead of investing the money, Buchanan spent them on a 4,700-square-foot house in an expensive neighborhood and luxury cars, including a super-size BMW.

Buchanan's scheme started to fall apart when he was not able to give investors their money back. As more and more investors became suspicious, the scheme unfolded. The investors eventually alerted the Maricopa County Sherrif's Office.

Chapman & Associates' investigation determined that - as in any Ponzi scheme - a large proportion of investors' funds have been used to pay earlier investors, and Buchanan is thus insolvent. However, the investors may be able to recover their losses from Buchanan's employer, Linsco, according to John S. Chapman, Esq. "Linsco had a duty to supervise its broker, James Buchanan, and make sure he does not peddle fraudulent investments to its customers. Instead, Linsco was asleep at the wheel while Buchanan was defrauding his victims of their life savings," said Chapman.

Chapman & Associates intends to vigorously prosecute Buchanan's investors claims against Linsco. Chapman & Associates is a securities litigation firm that often handles fraudulent investment claims on behalf of investors, nationwide, in FINRA arbitration. If you or a family member has been victimized in James Buchanan's fraud, please contact us toll free at 866-220-3300 or by email at jchapman@jscltd.com. For more information about other fraudulent investment cases prosecuted by Chapman & Associates, visit us online at www.johnschapman.com .