Expertise
1. Fiduciary Duty & Standard of Care
• RIA fiduciary evaluations
• Suitability and Regulation Best Interest (Reg BI) analysis
• Conflict-of-interest review & disclosure practices
• Assessment of advisor conduct vs. industry norms
2. Supervisory Systems & Compliance Program Effectiveness
• Failure-to-supervise assessments
• Review of WSPs, supervisory structure, and enforcement
• Advisor oversight, escalation protocols, and training programs
• Interpretation of SEC exam findings and compliance expectations
3. Operational Controls, Fraud Prevention & AML Red-Flag Escalation
• Unauthorized wire transfers & account takeover failures
• POA, authentication, and authority verification
• AML escalation, suspicious-activity procedures, KYC/EDD
• Elder financial exploitation and red-flag identification
4. Complex Products, Trading Practices & Portfolio Suitability
• Options, futures, annuities, alternatives, structured products
• Concentration, leverage, volatility, and hedging analysis
• RIA portfolio construction and investment-policy alignment
• Misrepresentation, risk disclosure, and product-approval issues
5. Damages, Causation & Financial Analysis
• Profit/loss reconstruction and hypothetical performance modeling
• Cost-to-equity, turnover, commission analysis
• Causation vs. market-driven losses
• Clear, defensible damages models for arbitration or trial
(For search purposes, not intended to be a comprehensive list)
Expertise
1. Fiduciary Duty & Standard of Care
• RIA fiduciary evaluations
• Suitability and Regulation Best Interest (Reg BI) analysis
• Conflict-of-interest review & disclosure practices
• Assessment of advisor conduct vs. industry norms
2. Supervisory Systems & Compliance Program Effectiveness
• Failure-to-supervise assessments
• Review of WSPs, supervisory structure, and enforcement
• Advisor oversight, escalation protocols, and training programs
• Interpretation of SEC exam findings and compliance expectations
3. Operational Controls, Fraud Prevention & AML Red-Flag Escalation
• Unauthorized wire transfers & account takeover failures
• POA, authentication, and authority verification
• AML escalation, suspicious-activity procedures, KYC/EDD
• Elder financial exploitation and red-flag identification
4. Complex Products, Trading Practices & Portfolio Suitability
• Options, futures, annuities, alternatives, structured products
• Concentration, leverage, volatility, and hedging analysis
• RIA portfolio construction and investment-policy alignment
• Misrepresentation, risk disclosure, and product-approval issues
5. Damages, Causation & Financial Analysis
• Profit/loss reconstruction and hypothetical performance modeling
• Cost-to-equity, turnover, commission analysis
• Causation vs. market-driven losses
• Clear, defensible damages models for arbitration or trial
(For search purposes, not intended to be a comprehensive list)
James Karabas brings four decades of frontline securities-industry experience to his expert witness practice, offering clear, unbiased opinions grounded in real-world supervisory, compliance, operational, and investment management leadership.
As a former Chief Compliance Officer, Chief Operating Officer, Branch Manager, and Private Wealth Advisor, James provides a uniquely comprehensive perspective on industry standards, fiduciary obligations, and regulatory expectations for both RIAs and broker-dealers.
Credentials
• Juris Doctor (JD) – John Marshall Law School
• Certified Fraud Examiner (CFE®)
• Certified Investment Management Analyst (CIMA®)
• Certified Financial Planner (CFP®)
• Former FINRA Registered Principal (Series 24)
• Past registrations: Series 3, 5, 7, 15, 63, 65
• Member: Securities Expert Roundtable, ACFE, FPA, Investment & Wealth Institute
Industry Leadership Experience
• Chief Compliance Officer & COO, Embree Financial Group
• District Branch Manager, Waddell & Reed
• Managing Director, Vestor Capital Partners
• Private Wealth Advisor & First Vice President, Merrill Lynch
• Securities Litigation Consultant, Independent
• Derivatives Specialist, Paine Webber, Oppenheimer, Prudential-Bache
Engagement Philosophy
James provides fact-driven, regulatorily informed expert opinions that withstand scrutiny. His testimony is clear, accessible, and grounded in decades of combined experience across supervision, operations, investment management, and compliance leadership.
Curriculum Vitae
SER Voting Member
