FINRA Suspends and Fines Broker Jeffrey Jacobson

Jacobson was sanctioned for failing to supervise a broker who is accused of executing unsuitable investments for elderly clients

The Financial Industry Regulatory Authority (FINRA) suspended Minnesota broker Jeffrey Jacobson for 15 days ending on December 12th, 2016 and fined him $7,500. Jacobson is alleged to have failed to adequately supervise a representative of his firm who initiated hundreds of trades for his elderly customers without contacting them. The representative is also reported to have unsuitably recommended transactions to those customers, including a variety of short-term trades in corporate and municipal bonds. Churning of municipal bonds is a particular problem, because the costs of bond trading are not transparent.

As a supervisor, Jacobson is alleged to have ignored warning signs of these unsuitable transactions, including unusually high trading activity in client accounts.

According to FINRA, Jacobson never directly communicated with customers about the situation. Instead, he is reported to have sent vague “activity letters” that did not specifically discuss the unsuitable nature of the trades that had been made for clients. In addition, FINRA alleges that Jacobson did not alert any other supervisory panel or organization about the representative’s trading activities. As a result, Jacobson was fined and suspended.

Jacobson’s career in the securities industry began in 1993 at A.G. Edwards & Sons in St. Louis, Missouri. Since then, he has worked for a variety of firms, including PaineWebber Incorporated in Weehawken, New Jersey, Raymond James Financial Services, Inc., in St. Petersburg, Florida, and LM Financial Partners in New Orleans, Louisiana. Jacobson currently works at Dougherty and Company LLC in Minneapolis, Minnesota.

If you enlisted the services of Jeffrey Jacobson and have suffered losses as a result of this relationship, you may be able to recover some or all of your money. You can find out more about the allegations against him by reviewing his BrokerCheck report, a complimentary service provided by FINRA.

The attorneys at Silver Law Group are leaders in the field of securities arbitration. Scott Silver is the current chair of the American Trial Lawyers Association Securities and Financial Fraud Group, and our attorneys have many years of experience handling elder financial fraud cases and securities arbitration claims.

Our services are provided on a contingency-fee basis, which means we are only compensated if there is a recovery of losses, and we can visit your home for a consultation about your situation. Contact us today to get in touch with an elder financial fraud attorney.