NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

James Carter McKelvain
OS/2007008899401

McKelvain engaged in private securities transactions without providing prior written notice to, and receiving prior written approval from, his member firm. 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. McKelvain negligently misrepresented to the customers that they would receive a tax deduction in connection with their investments. McKelvain engaged in the sale of these installment plan contracts, which were securities, without being properly registered with FINRA as a general securities representative.

James Carter McKelvain : Fined $35,000; Ordered to pay $128,177.16 disgorgement (less any amount paid to date);Suspended 8 months