Securities Arbitration Lawyers BlogFINRA Suspends Jeremy Fortner After Borrowing Money From Clients
Jeremy Fortner (CRD# 4811478) is a former registered broker and investment advisor whose last known employer was Wells Fargo Clearing Services, LLC (CRD#:19616) of Beverly Hills, CA. His previous employers include J.P. Morgan Securities LLC (CRD#:79) of Sherman Oaks, CA, Chase Investment Services Corp. (CRD#:25574) of both Encino and Los Angeles, CA, and J.P. Morgan Institutional Investments Inc. (CRD#:102920) of Kansas City, MO. He has been in the industry since 2004.
Fortner’s most recent disclosures are from three clients:
- A dispute filed on 5/16/22 alleges that Fortner told him that interest on a margin loan “would cost me nothing.” Period from 1/1/2018 through 8/4/2021.
- A dispute filed on 5/9/22 in which a client’s attorney complained that the account was churned for commissions totaling $62,642.82 over the life of the account, from 3/1/2015 through 8/31/2021. The client, through his attorney, is requesting damages of $250,000.
- On 5/2/2022, a customer filed a dispute in which he stated that he gave his financial advisor a personal loan which has not been paid back. Period from 1/4/2017 through 5/2/2022. This client requests damages of $30,000.
All three are currently pending.
On 8/1/2021, Wells Fargo Clearing Services discharged Fortner for “borrowing money from multiple firm clients.” Nine customer disputes with settlements totaling $535,488.49 follow with similar allegations of:
- Borrowed funds not repaid, including two secured with promissory notes
- Involvement in Fortner’s outside business activities and outside private placements
- Recommendation of a real estate investment
- The purchase of a security in one client’s account without authorization
These disputes are dated from 6/23/2021 from 11/23/2021.
FINRA contacted Fortner for information related to its investigation, but he failed to respond with information. This led to a permanent and indefinite bar in all capacities against Fortner, beginning on 3/3/2022. FINRA imposed no fines.
On 1/6/2022, the Oregon Division of Financial Regulation issued a Cease-and-Desist order against Fortner for the solicitation of one loan from a client totaling $25,000. The state sanctioned Fortner with a fine of $20,000 and “Denial of exemptions to the Oregon Securities Law.”
California Securities Attorneys – Wells Fargo
If you’re a regular reader of this blog, and you’re thinking, “I’ve heard this story before,” you’re correct. Last year we reported on a broker who borrowed money from a client and was subsequently barred by FINRA. In January 2019 we reported on another broker who borrowed over $9 million from his clients and passed away two days after notifying his firm. Several customers filed disputes more than a year after he died.
Many brokers throughout the US offer their clients solid financial advice and good recommendations for their investments. But there are some brokers who use dishonest tactics to defraud their clients with a range of tactics.
One of the most popular is called “churning,” or excessively trading in a client account to generate commissions and fees. The account never makes any money, or begins to lose money, while the broker continues to profit from the trades.
Remember that your broker and/or investment advisor is duty-bound to know your financial objectives, needs and constraints and is required to make investment recommendations accordingly. Therefore, any transactions that are not in line with your investment strategies and/or financial circumstances can be considered unsuitable. These can include high-risk or illiquid investments, or high concentrations into one particular security or stock.
Did You Invest With Jeremy Fortner?
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.