James Carter McKelvain (CRD # 1565890, Registered Representative, Burleson, Texas) submitted an Offer of Settlement in which he was fined $35,000, suspended from association with any FINRA member in any capacity for eight months and ordered to pay $128,177.15 in disgorgement, less any amount already paid. Without admitting or denying the allegations, McKelvain consented to the described sanctions and to the entry of findings that he engaged in private securities transactions without providing prior written notice to, and receiving prior written approval from, his member firm. The findings stated that, in connection with the sale of installment plan contracts offered by an alleged charitable organization, McKelvain presented sales materials to customers that contained misleading and oversimplified product descriptions that had not previously been provided to a firm registered principal for review and approval. The findings also stated that McKelvain negligently misrepresented to the customers that they would receive a tax deduction in connection with their investments. The findings also included that McKelvain engaged in the sale of these installment plan contracts, which were securities, without being properly registered with FINRA as a general securities representative.
The suspension is in effect from February 1, 2010, through September 30, 2010.

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